Which one is an example of setup cost? Group of answer choices Business insurance Raw materials cost Machine depreciation Taxes Cleaning previous materials
Question
Which one is an example of setup cost? Group of answer choices
Business insurance
Raw materials cost
Machine depreciation
Taxes
Cleaning previous materials
Solution
The example of a setup cost from the given choices is "Cleaning previous materials". This is because setup costs are the costs incurred to get equipment ready to process a different batch of goods. Hence, cleaning up after a previous batch of materials would be part of the setup cost.
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