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Cost hierarchy: indicate the level of cost for the following a to d. a. Procurement costs of placing purchase orders, receiving materials and paying suppliers
Cost hierarchy: indicate the level of cost for the following a to d.
a. Procurement costs of placing purchase orders, receiving materials and paying suppliers related to the number of purchase orders placed
b. Costs incurred to set up machines each time a different product needs to be manufactured.
c. Costs of designing processes, drawing process charts, and making engineering changes for individual products
d. Plant management, plant rent, and insurance costs
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