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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 2
VALUE-STREAM AVERAGE COSTING, ABC COSTS AS BENCHMARKS
A value stream has three activities and two products. The units produced and shipped per week are 100 of the deluxe model (Model A) and 300 of the basic model (Model B). The resource consumption patterns are shown as follows:
Required:
1. Calculate the ABC product cost for Models A and B.
2. Calculate the value-stream average product cost. Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.
A value stream has three activities and two products. The units produced and shipped per week are 100 of the deluxe model (Model A) and 300 of the basic model (Model B). The resource consumption patterns are shown as follows:
Required:
1. Calculate the ABC product cost for Models A and B.
2. Calculate the value-stream average product cost. Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.
Explanation
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1.
Calculation of the ABC product cost ...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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