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 approach allocates the total costs across all units shipped, reflecting the actual output.

What Is the Usual Formula for Calculating Product Costs for Value