What is the usual formula for calculating product costs for value streams with multiple products?
A)Total value stream cost of period/Units shipped for period
B)Budgeted value stream cost of period/Units shipped for period
C)Total value stream cost of period/Units sold for period
D)Budgeted value stream cost of period/Forecasted units shipped for period

Question

Quizplus · Accepted Answer

The usual formula for calculating product costs for value streams with multiple products is the total value stream cost of the period divided by the units shipped for that period. This method allocates the total costs incurred by the value stream across all units shipped, providing a simple way to assign costs in environments where multiple products share processes or resources.

What Is the Usual Formula for Calculating Product Costs for Value