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Definition of

setup costs


amount spent to make equipment usable the costs associated with making a workstation or equipment available for use. Setup costs include the personnel needed to set up the equipment, the cost of downtime during a new setup, and the resources and time needed to test the new setup to achieve the specification of the parts or materials produced.

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Definitions of ’setup costs’ and meaning of ’setup costs’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’setup costs’ and other financial terms with our online QFINANCE Financial Dictionary.

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