Setup time is
$\text {\underline{ A batch cost} }$ $\text {\underline{ A value-added cost} }$ $\text {\underline{ A production Cost} }$

A)no no yes
B)yes yes no
C)yes no yes
D)no yes yes

Question

Setup time is
$\text {\underline{ A batch cost} }$ $\text {\underline{ A value-added cost} }$ $\text {\underline{ A production Cost} }$

A)no no yes
B)yes yes no
C)yes no yes
D)no yes yes

Quizplus · Accepted Answer

Setup time is considered both a batch cost, because it is incurred each time a batch of products is prepared for production, and a production cost, as it is part of the costs associated with manufacturing products. It is not considered a value-added cost because it does not directly add value to the product from the perspective of the customer.

Setup Time Is A batch cost‾ \text {\underline{ A batch cost} } A batch cost​ &Nbsp; A value-added cost‾ \text {\underline{ A value-added cost} } A value-added cost​

Setup Time Is $\text {\underline{ A batch cost} }$ &Nbsp; $\text {\underline{ A value-added cost} }$