Definition of activity level

description of how an activity is used by a cost object or other activity. Some activity levels describe the cost object that uses the activity and the nature of this use. These levels include activities that are traceable to the product (i.e., unit-level, batch-level, and product-level costs), to the customer (customer-level costs), to a market (market-level costs), to a distribution channel (channel-level costs), and to a project, such as a research and development project (project-level costs).