Which of the Following Results in Fewer Transactions in Lean

question 2

Multiple Choice

Which of the following results in fewer transactions in lean accounting?

• A)All manufacturing costs are combined into one account called Raw and In Process Inventory.
• B)The distinction between direct and indirect costs is eliminated.
• C)There is less movement of inventory between departments.
• D)all of these choices

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Definitions:

Marginal Cost

The increase in total cost that arises from producing an additional unit of a good or service.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs per unit change with output levels.

MC

Marginal Cost, the cost of producing one additional unit of a good.