Which of the following is the term that represents the costs of preparing machinery for each production run?
A)production costs.
B)setup costs.
C)discretionary costs.
D)sunk costs.

Question

Quizplus · Accepted Answer

Setup costs refer to the costs involved in preparing machinery, equipment, and workplace for each production run. These costs include things like labor, materials, and equipment needed to set up the machinery and get it ready for the production run. Production costs (A) generally refer to the costs of producing a product, while discretionary costs (C) are costs that a company can choose to incur or not based on its discretion. Sunk costs (D) are costs that have already been incurred and cannot be recovered.

Which of the Following Is the Term That Represents the Costs