The weekly unit product cost for multiple-product value streams is calculated by:

Question

The weekly unit product cost for multiple-product value streams is calculated by:​

Quizplus · Accepted Answer

The weekly unit product cost for multiple-product value streams is calculated by adding each unit's materials cost to the average conversion cost. This method takes into account both materials and conversion costs, and is the most accurate way to determine the cost of producing each unit. Dividing total actual value-stream costs by units shipped (A) would not factor in per-unit costs, and dividing actual materials cost by units produced (B) would not account for conversion costs. Adding actual conversion costs to units produced (D) would not account for materials costs.

The Weekly Unit Product Cost for Multiple-Product Value Streams Is