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.

---

Definitions:

Episodic

Pertaining to events or experiences that are organized into discrete, individual units or episodes in memory.

Generic

Attribute or thing that is characteristic of all or most members of a class, not specific or specialized.

Intelligence Tests

Standardized assessments designed to measure a person's cognitive abilities and potential relative to a population.

Reliable

The quality of being consistently good in quality or performance, dependable.