Which of the Following Is an Example of a Lean

question 75

Multiple Choice

Which of the following is an example of a lean production initiative?

• A) Rearranging factory floor layouts
• B) Using statistical quality control charts
• C) Developing long-term relationships with excellent suppliers
• D) Reducing delivery problems

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Definitions:

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid as of the balance sheet date.

Effective Interest Method

A technique used in accounting to allocate interest expense or income over the life of a financial instrument at a constant interest rate.

Semiannually

Occurring twice a year, typically every six months.

Discount Amortized

The process of gradually reducing the discount on bonds payable over the life of the bonds as an interest expense.