Using Average Product Cost for a Value Stream Means That

question 20

Multiple Choice

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

• A)waste can be eliminated at the activity and process level without knowing product costs.
• B)a fully accurate product cost is not needed for many decisions.
• C)standard costing variances may actually impede improvement decisions.
• D)all of the above.

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Definitions:

Digestive System

An organ system that breaks down food into absorbable units to provide energy and nutrients to the body while disposing of waste products.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most of the digestion and absorption of nutrients occurs.

Large Intestine

The final section of the digestive system, responsible for water absorption and the formation of feces.

Visceral Peritoneum

The inner layer of the peritoneum that envelopes abdominal organs, providing a protective covering and supporting their functions.