Value-Added Costs Are Standard Costs Based on

question 12

Multiple Choice

Value-added costs are standard costs based on

• A) currently attainable standards.
• B) ideal usage standards.
• C) cycle time.
• D) the value added.

---

Definitions:

WIP Inventory

Work-in-process inventory, which represents the costs of unfinished goods in manufacturing processes.

Finished Goods Inventory

The stock of completed products ready for sale, reflecting the end-stage of the production process.

Value Chain

The major business functions that add value to a company’s products and services such as research and development, product design, manufacturing, marketing, distribution, and customer service.

Major Activities

The principal actions or operations carried out within an organization or by a project, typically contributing to achieving its main objectives.