Product-Sustaining Activities

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Activity-Based Costing Cost Allocation Activities Resource Management Batch-Level Activities Product-Sustaining Activities Unit-Level Activities Customer-Level Activities

In activity-based costing (ABC) systems, an activity refers to any operation performed within an organization that causes costs to be incurred. Examples include processing an order, writing a letter, designing a product, and visiting a customer. This concept is integral to accurately allocating costs based on actual activities.