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:

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.

Vocational School

An educational institution that provides specialized training and education aimed at preparing students for specific trades, crafts, or careers.

Activity Variances

The differences between planned or expected levels of activity (and associated costs) and actual outcomes, often used for performance evaluation and control.