Machine set-up costs, which are incurred each time a new batch is started regardless of the number of units in the batch, are classified in the ABC cost hierarchy as:

Correct answer: B) Batch-level activities

Explanation

Batch-level activities are performed for each batch, so their cost depends on the number of batches rather than units. Unit-level activities (such as machine power) vary with each unit; product-sustaining activities support a product line (such as product design); facility-sustaining activities support the plant as a whole.