Using Average Product Cost for a Value Stream Means That

question 42

Multiple Choice

Using average product cost for a value stream means that individual product costs are not known.Why is this adequate?

• A)Waste cannot be eliminated at the activity and process level.
• B)A fully accurate product cost is not needed for many decisions.
• C)Budget costing variances may actually impede improvement decisions.
• D)Detailed variances by department are not needed to eliminate waste.

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Definitions:

Costs And Benefits

An analysis or assessment comparing the negatives and positives of a decision, project, or proposal.

Teleological Ethical Theory

An ethical theory that holds that the morality of an action is determined by its outcomes or ends.

Social Welfare

Programs and policies designed by governments or organizations to provide support and assistance to individuals or groups in need, aiming to improve their quality of life.

Rights Theory

A conceptual framework focusing on what individuals are entitled to do according to moral principles or legal rights, often emphasizing the respect for individuals' autonomy.