If a Facility Has Costs of $100,000 Per Year and 20,000

question 44

Multiple Choice

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

• A)allocated to all the value streams based on proportionate square foot usage
• B)assigned to all value streams equally
• C)absorbed by the largest value stream
• D)deducted from revenue as a separate item

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.

Foreign Goods

Products that are produced in a different country than where they are sold or consumed.

Net Capital Outflow

The gap between nationals purchasing assets from abroad and foreigners investing in the nation's assets.

Loanable Funds

A term used in economics to describe the market where savers supply funds for loans to borrowers.