Setup costs ______.
A)are the costs of setting up retail operations
B)are the costs of changing production from one item to another
C)are usually higher than holding costs
D)are the same as storage costs

Question

Quizplus · Accepted Answer

Setup costs refer to the costs incurred when switching production from one item to another. This includes the time and expense of retooling equipment, training workers, and changing over materials. Setup costs are an important consideration in manufacturing and impact the efficiency and profitability of production runs.

Setup Costs ______