Which of the Following Approaches to Cost-System Design Is Likely

question 142

Multiple Choice

Which of the following approaches to cost-system design is likely most appropriate for a lean manufacturing context?

• A) Activity-based costing (ABC).
• B) Resource-consumption accounting (RCA).
• C) Value-stream costing.
• D) Direct costing.
• E) Full absorption standard costing.

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Definitions:

Joint Cost

The cost of the input and process that yields two or more products in fixed proportions as a result. For example, the cost of the barrel of oil and of splitting it into gasoline and motor oil is a joint cost.

Service Departments

Refers to the divisions or units within an organization that provide support services to the production or operational departments rather than directly producing goods or services.