Using Average Product Cost for a Value Stream Means That

question 73

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 these.

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Definitions:

Tendons

Strong connective tissues that connect muscles to bones, transmitting the force that allows movement.

Ligaments

Strong, flexible fibers that connect bones to other bones at joints.

Extracellular Matrix

A complex network of proteins and carbohydrates surrounding cells, providing structural and biochemical support to the surrounding cells.

Ground Substance

The unstructured material that fills the space between the cells and contains the fibers in connective tissue.