When Lean Is Used in the Context of Services, Which

question 52

Multiple Choice

When lean is used in the context of services, which of the following is most often the focus?

• A)the labor content of the service
• B)the time needed to perform a service
• C)the inventory tied up in the service
• D)the equipment used in the service
• E)suppliers of inputs to the service

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Definitions:

Accounts Receivables

Accounts Receivables are amounts owed to a business by its customers for goods or services delivered on credit, representing assets on the balance sheet.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue, calculated as sales divided by total assets.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Acid Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.