An Initial Step in Implementing Lean Is

question 27

Multiple Choice

An initial step in implementing lean is:

• A)Lower the break-even point so smaller quantities can be economically produced.
• B)Outsource any non-core activity that can be done more efficiently by a supplier than by the firm.
• C)Increase the contribution margin of product being sold.
• D)Empower Kaizen teams to improve specific processes/activities.

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Definitions:

Cost Of Goods Manufactured

The cost of goods manufactured is the total production cost of goods completed during a specific period, including labor, materials, and overhead.

Beginning Finished Goods Inventory

The value of a company's completed products ready for sale at the start of an accounting period.

Cost Of Goods Sold

The total cost directly linked to the production or purchase of goods that have been sold in a period.

Ending Finished Goods Inventory

The value of products available for sale at the end of an accounting period, after all manufacturing costs are accounted for.