A Company Becomes Lean by ________ Its Capacity to Produce

question 123

Multiple Choice

A company becomes lean by ________ its capacity to produce high-quality goods, while ________ its need for resources.

• A) investigating; planning
• B) increasing; decreasing
• C) decreasing; increasing
• D) planning; investigating

Account for research and development costs, especially in technology-intensive industries.

Recognize and measure asset losses due to impairment or government orders.

Record asset exchanges with commercial substance and adjust for differences in fair values.

Understand the concepts of internal transfer pricing and the factors influencing the determination of transfer prices.

---

Definitions:

Work in Process Inventory

The value of partially completed goods that are still in the production process at a given point in time.

Underapplied Overhead

The situation where the allocated manufacturing overhead is less than the actual overhead incurred, leading to an adjustment need in accounting records.

Adjusting Entry

An accounting journal entry made to amend the preliminary financial records before preparing financial statements.

Manufacturing Overhead

Indirect costs related to manufacturing, including utilities, rent for manufacturing facilities, and equipment maintenance, not directly tied to individual units produced.