To manage setup costs, a corporation might focus on the:
A)number of setup-hours
B)number of units included in each production run
C)batch-level costs incurred per setup-hour
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

To manage setup costs, it is important to consider both the number of setup-hours and the batch-level costs incurred per setup-hour. By reducing the number of setup-hours required for each production run and improving the efficiency of setup tasks, the company can lower its overall setup costs. Additionally, by analyzing and potentially reducing the batch-level costs associated with setup tasks, such as equipment or material costs, the company can further manage its setup expenses. Therefore, both options A and C are correct and should be considered in managing setup costs.

To Manage Setup Costs, a Corporation Might Focus on The