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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 20
Lean manufacturing uses value streams to produce a family of products that require the same manufacturing sequence. Value-stream costing is an approach often used to determine the unit product costs in a lean manufacturing environment. Which of the following best describes how unit costs are calculated using value-stream costing? a. Value stream costs divided by units shipped
B) Value stream costs divided by units produced
C) (Total prime costs + overhead costs assigned to the value stream using a plantwide rate) divided by units produced
D) Activity-based costing assignments within the value stream
B) Value stream costs divided by units produced
C) (Total prime costs + overhead costs assigned to the value stream using a plantwide rate) divided by units produced
D) Activity-based costing assignments within the value stream
Explanation
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Verified
With multiple products, product costs fo...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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