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.

Review empirical evidence on contributors to wage differences including ability, effort, and chance.

Understand the role and impact of minimum wage laws on labor demand.

Recognize the influence of unions and collective bargaining on wage rates.

Comprehend legal aspects concerning labor market discrimination in the United States.

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Definitions:

Selling Price

The price at which a product or service is sold to customers, reflecting the cost plus any added profit margin.

Acquisition Differential

This refers to the difference between the purchase price of a company and the fair value of its identifiable net assets.

Straight Line Amortization

A method of gradually writing off the initial cost of an asset over its useful life in equal installments.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy, including decisions on the composition of the board of directors.