Which of the Following Is True of the Duration-Based Value-Stream

question 10

Multiple Choice

Which of the following is true of the duration-based value-stream costing approach?

• A) ​It offers both simplicity and accuracy and, thus, may be well suited for multiple-product value streams.
• B) ​This approach recognizes that some product components take more effort (time) to make than others and thus cost more.
• C) ​In duration-based costing, an adjustment is made to the average product cost that reflects the differences in product features and characteristics.
• D) ​Duration-based costing and features and characteristics costing are used interchangeably.

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Definitions:

Long-Term Forecasts

Predictions about future events or trends in an industry or organization that extend beyond the immediate future, typically several years ahead.

Standard Deviation

An indicator of the extent of differences or spread among a collection of numbers.

Posterior Communicating Arteries

Arteries that connect the posterior cerebral arteries with the internal carotid arteries and are part of the circle of Willis in the brain.

Anterior Cerebral Arteries

Arteries supplying blood to most of the medial portions of the frontal lobes and superior medial parietal lobes of the brain.