MANAGEMENT

Detailed explanation-1: -In manufacturing, setup cost is the cost incurred to get equipment ready to process a different batch of goods. Hence, setup cost is regarded as a batch-level cost in activity based costing. Setup cost is considered to be a non-value-added cost that should be minimized.

Detailed explanation-2: -noun [ C or U ] (also setup cost) us. the amount of money needed to start a business, service, etc.: There are no phone charges or set-up costs for the internet service if you register as a telephone customer.

Detailed explanation-3: -Ordering costs are the costs that a company spent to place an order for supplies. Making a purchase order and the labor cost associated with orders are some examples of ordering costs. Setup costs are incurred to make equipment or asset ready to process the goods from raw form of material to finished product.

Detailed explanation-4: -What are examples of startup costs? Examples of startup costs include licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities.

Detailed explanation-5: -Production costs refer to the costs a company incurs from manufacturing a product or providing a service that generates revenue for the company. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.