The Unit Product Cost of Product B7 Under Activity-Based Costing

question 201

Multiple Choice

The unit product cost of Product B7 under activity-based costing is closest to:

• A)$1,066.17 per unit
• B)$692.82 per unit
• C)$974.69 per unit
• D)$890.20 per unit

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Definitions:

Just-In-Time (JIT)

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, delivering materials just when they are needed.

Customer Wants

Specific desires or requirements of consumers that businesses aim to meet with their products or services in order to satisfy and retain their clientele.

JIT Environments

Settings or conditions where Just-In-Time inventory management and production practices are implemented to minimize inventory costs and waste.