Which of the following is an example of a batch-level cost?
A) Factory maintenance
B) Customer service
C) Direct materials
D) Set-up

Question

Quizplus · Accepted Answer

Batch-level costs are those costs incurred every time a batch is produced, regardless of the size of the batch. Set-up costs, which are incurred to prepare equipment and facilities for the production of a batch, are a prime example of batch-level costs. These costs do not change with the number of units in the batch but are necessary for each batch's production.

Which of the Following Is an Example of a Batch-Level