Customer-cost hierarchy

Customer-cost hierarchy is hierarchy that categorizes costs related to customers into different cost pools on the basis of different types of cost drivers, or cost-allocation bases, or different degrees of difficulty in determining cause-and-effect or benefits-received relationships.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Customer-cost hierarchy. Hierarchy that categorizes costs related to customers into different cost pools on the basis of different types of cost drivers, or cost-allocation bases, or different degrees of difficulty in determining cause-and-effect or benefits-received relationships.