The "Lean" Ideal Regarding Inventory Is to Have Just Enough

question 6

True/False

The "lean" ideal regarding inventory is to have just enough inventory to keep operations running smoothly and meet customer needs.

---

Definitions:

Change In Accounting Principle

A modification in the method used for accounting, such as from one generally accepted accounting principle (GAAP) to another, or an update to the accounting framework.

Capitalizing

The accounting practice of spreading out the cost of a large expense over multiple reporting periods, often for long-term assets or investments.

Energy Saving Device

A device designed to reduce energy consumption without compromising the functionality of the equipment it is attached to.

Original Useful Life

Original Useful Life refers to the expected duration, typically measured in years, during which an asset is considered usable for its intended purpose.