Question: Our machine is used to make both Product A and Product B. It takes 2 hours to set up the machine to make Product A

Our machine is used to make both Product A and Product B. It takes 2 hours to set up

the machine to make Product A and 2 hours to set up the machine to make Product B.

Most of the total setup cost for the year was charged to Product A. What level of the cost hierarchy would the setup cost most likely fall into?

facility

product

batch

unit

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