Which of the Following Is a Reason Traditional Costing Approaches

question 13

Multiple Choice

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

• A)Standard costing variances encourage overproduction.
• B)Distorted product costs may conceal the outcome of success of a lean system.
• C)Traditional operational controls work against demand-pull systems.
• D)all of the above.

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Definitions:

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Steak

A slice of meat, typically beef, cooked by grilling, frying, or broiling, and served as a main dish.

Hamburger

A popular food item consisting of cooked ground meat, usually beef, placed inside a sliced bun, often accompanied by various toppings.

Absolute Value

The absolute value of a number is its distance from zero on the number line, without considering direction; it is always positive.