Set-up costs are the expenses incurred in the actual ordering of materials and inventory,or in setting up the manufacturing line.

Question

Quizplus · Accepted Answer

Set-up costs are incurred in the initial stages of production or manufacturing, such as ordering equipment, raw materials, and setting up the production line. These costs are necessary to start the manufacturing process and are distinct from the costs of producing each unit.

Set-Up Costs Are the Expenses Incurred in the Actual Ordering