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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Why are units shipped used to calculate the value-stream cost?

To determine

Explain the reasons because of which units shipped are used to calculate the value-stream cost.

Explanation

Value Stream:

Value stream consists of the processes through which a product goes; that is from procurement to delivery. In value stream, all processes are covered whether or not they add value to the product.

Focused value stream is dedicating all the costs to the product. It requires that all the costs involved like employees, activities, resources and equipment are directly traced to the product to eliminate the wasteful activities...

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