Business, 27.08.2020 14:01 junior1391

What are unit-level, batch-level, product-level, customer-level, and organization-sustaining activities?

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Unit-level Activities includes the activities that are performed on production of every single unit. These includes the material cost, labor cost, etc. These unit level activities are largely used by companies like real estate companies who produce products in units because of orders they receives are in units.

Batch-level activities are the activities that are involved in performing of activities that is inter-related with production of batch irrespective of individual unit. The examples include the machine setup cost, batch delivery cost, batch inspection cost, etc. These batch level activities are used by Fast Moving Consumer Goods companies like Procter and Gamble, Nestle, Coke, Philips and Morris, etc.

The Product-level activities are the activities that are related to an individual product. These activities are largely used for differentiated products like Bugatti, Royal Royce, Ferrari, etc. These Product-level activities include all the activities which are concerned with making and designing of a product irrespective of batch and number of units produced.

Customer level activity are the activities that are related to an individual customer and are not concerned with the product offerings. Examples of these customer-level activities include IT support, Audit of companies, Consulting fees, sales calls, etc. Customer level activities are largely used by service companies like audit firms, IT firms, etc.

Organization-sustaining activities are the activities that are under taken to maintain the operations of the company for foreseeable future. The activities are based on ensuring continuity of future operations. These Organization-sustaining activities includes activities like insurance of building and produciton house, Preparing annual financial statements, fees related to accounting software, etc. Every company uses these organization sustaining activities.

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