Which of the Following Costs Is Not Related to a Batch-Related

question 61

Multiple Choice

Which of the following costs is not related to a batch-related activity?

• A) Material handling.
• B) Machine setups.
• C) Shipping costs.
• D) Compliance costs.

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Definitions:

Newspaper Dispensing

A method or machine used for distributing newspapers to consumers, often requiring payment for each paper dispensed.

Diminishing Marginal Utility

The economic principle stating that as a person increases consumption of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Increasing Opportunity Costs

The principle that the cost of forgoing the next best alternative increases as one allocates more resources to a certain activity.

Value Losses

Decreases in the worth or market value of an asset over time.