Accounting Dictionary - Letter C

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Cost hierarchy
is a management classification scheme that is used to classify costs into various levels. Organizations that use activity-based costing (ABC) to allocate overhead costs will likely identify different levels of activities and therefore different levels of costs. In contrast, organizations that do not use the ABC will likely recognize only one level of activities and hence one level of costs (i.e., production volume or service related).
Go Back
Don't see the term you are looking for? Try searching our entire website:
Not a member?
See why people join our
online accounting course: