Which of the Following Is True of the Features and Characteristics

question 17

Multiple Choice

Which of the following is true of the features and characteristics value-stream costing approach?

• A) This costing approach offers both simplicity and accuracy and, thus, may be well suited for multiple-product value streams.
• B) ​This costing approach recognizes that some product components take more effort (time) to make than others and thus cost more.
• C) This costing approach uses a single rate to assign conversion costs and approximates a comprehensive ABC system based in duration drivers.
• D) This costing approach is used interchangeably with the duration-based value-stream costing approach.

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Definitions:

Asset Method

A valuation technique that determines a company's value based on the total net assets it possesses, often used in the context of mergers, acquisitions, and financial reporting.

Income Statement Method

An accounting methodology used for calculating income and expenses to determine a company's net profit or loss over a specific period.

Tangible Assets

Assets owned by a business that can be seen and examined.

Intangible Assets

Assets that have value to a business but are not visible.