Core Tenets of the Lean Philosophy Include

question 52

Multiple Choice

Core tenets of the lean philosophy include:

• A) Complexity
• B) Waste reduction
• C) Functional view
• D) Statistical process control
• E) a and b

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Definitions:

Acid-Test Ratio

The acid-test ratio, also known as the quick ratio, measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Marketable Securities

Financial instruments that can be easily converted into cash. They include stocks, bonds, and Treasury bills among others.

Current Liabilities

Financial responsibilities that must be settled within a period of one year.

Noncurrent Assets

Long-term assets that are not expected to be converted into cash within a year, such as property, plant, and equipment.