DIFFERENCE BETWEEN SINGLE LEVEL AND MULTI LEVEL COSTING

Sir,'
Please explain the difference between Single Level and Multi Level Costing in Detail
thanking You

While using material ledger, we can use the single level or multi-level price determination for valuation of inventory.
Procurement processes are used in Product Cost Controlling to determine procurement costs and to present those costs. Purchase Order, for example, is single-level procurement and Production is multilevel procurement.
Single-level material price determination calculates the periodic unit price for a material. The standard price and the cumulative single-level differences of the period are taken into account. Single-level material price determination takes into account the differences that arise directly when a material is procured.
Multilevel price determination calculates the periodic unit price for a material. The standard price, the single-level differences cumulated in the period, the differences between planned and actual prices, as well as input material differences (multilevel differences) are all taken into account.
Single-level material price determination  is a prerequisite for Multi-level price determination.

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