The cost equalization point:
A)is used to show the potential profit of a process
B) shows the lot size where costs are minimized
C) is used to select the lowest cost of two or more alternative processes
D) is the point where unit cost of a process are at a minimum
E)uses all the above

Question

Quizplus · Accepted Answer

The cost equalization point is used to compare two or more alternative processes to determine which has the lowest cost under specific conditions, making choice C correct. It does not directly show potential profit, lot size where costs are minimized, or the point where unit costs are at a minimum, which eliminates the other options.

The Cost Equalization Point