Cost Hierarchy

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Cost Hierarchy

A listing of all a company's or department's activities according to how expensive they are. While more expensive activities are not automatically reduced or eliminated, a cost hierarchy may make prioritization of activities easier, which may in turn influence budgeting decisions.
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References in periodicals archive ?
This new orthodoxy is founded on proper analysis and the idea of a hierarchy of cost. Proper analysis means the use of chemical tests and spectroscopic study of actual paint samples instead of 'scrapes' to determine the colour and composition of paint used in the past.