The Weekly Unit Product Cost for Multiple-Product Value Streams Is

question 31

Multiple Choice

The weekly unit product cost for multiple-product value streams is calculated by:​

• A) ​dividing total actual value-stream costs by units shipped.
• B) ​dividing actual materials cost by units produced.
• C) ​adding each unit's materials cost to the average conversion cost.
• D) ​adding actual conversion costs to units produced.

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Definitions:

Stock Market

A public market for the trading of company stock and derivatives at agreed upon prices.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Residual Income

Another term for economic value added (EVA).

Opportunity Costs

The cost of foregone alternatives when a decision is made, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.