Which of the following is an appropriate cost driver for setting up production equipment for a production run?
A) Machine hours
B) Number of setups
C) Setup hours
D) Either number of setups or setup hours would be appropriate

Question

Quizplus · Accepted Answer

The cost of setting up production equipment is more closely related to the number of setups or the hours it takes to set up, rather than the machine hours, which are more relevant to the actual production process.

Which of the Following Is an Appropriate Cost Driver for Setting