What approach is normally used to calculate product costs when products in a value stream are heterogeneous?
A)variable costing
B)features and characteristics costing
C)absorption costing
D)functional costing

Question

Quizplus · Accepted Answer

When products are heterogeneous, meaning they have different features and characteristics, the best approach to calculate product costs is through features and characteristics costing. This method takes into account the specific attributes of each product and assigns costs based on the materials, labor and overhead unique to that product.

What Approach Is Normally Used to Calculate Product Costs When