If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?
A) allocated to all the value streams based on proportionate square foot usage
B) assigned to all value streams equally
C) absorbed by the largest value stream
D) deducted from revenue as a separate item
Correct Answer:
Verified
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