Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as

A. cost hierarchy

B. price hierarchy

C. activity hierarchy

D. purpose hierarchy

Answer: Option A

Solution(By Examveda Team)

Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.