Activity-Based Costing - Types of Activities

The video tutorial explains activity-based costing, highlighting its accuracy over traditional costing by categorizing manufacturing overhead into activities. It covers five types of activities: unit level, batch level, product level, customer level, and organizational level. Each type is described in terms of its cost implications and relevance to production, sales, and business sustainability. The tutorial emphasizes that traditional costing methods often overlook these distinctions, leading to less accurate cost allocations.

Describe customer level activities and their impact on costs.

What are organizational level activities and how do they differ from other activity levels?