hierarchy of activities


hierarchy of activities
Fin
classification of activities according to the level within the organization to which they relate, for example, product level activities, batch level activities, product sustaining activities, or facility sustaining activities

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  • batch-level activities — Fin activities which vary directly with the number of batches of output produced, and which are independent of the number of units within a batch. Setup costs are batch level activities. See also hierarchy of activities …   The ultimate business dictionary

  • facility-sustaining activities — Fin activities undertaken to support the organization as a whole, which cannot be logically linked to individual units of output. Accounting is a facility sustaining activity. See also hierarchy of activities …   The ultimate business dictionary

  • product-sustaining activities — Fin activities undertaken in support of production, the costs of which are linked to the number of separate products produced rather than to the volume of output. Engineering change is a product sustaining activity. See also hierarchy of… …   The ultimate business dictionary

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