Which of the Following Is Not Considered a Benefit of Lean

question 48

Multiple Choice

Which of the following is not considered a benefit of lean production?

• A) less product variety
• B) increased capacity
• C) lower costs
• D) greater flexibilty

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Definitions:

Cash Conversion Cycle

A metric that shows the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The period between the acquisition of inventory and the collection of cash from receivables.

Compensating Balances

Compensating balances are minimum balance requirements that a bank may impose on a borrower, kept in a non-interest-bearing account, as part of loan agreements.

Cash Conversion Cycle

The cash conversion cycle measures the time it takes for a company to convert resource inputs into cash flows, indicating the efficiency of managing inventory and receivables.