Which of the Following Is Not a Risk of Lean

question 24

Multiple Choice

Which of the following is not a risk of lean systems?

• A)reduced cycle time
• B)increased stress
• C)increased responsibilities
• D)fewer resources
• E)supply chain disruptions

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Definitions:

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.

Quick Ratio

Current assets less inventories divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run, without depending on converting inventory into cash. Also called the Acid Test.

Current Ratio

The Current Ratio is a financial metric used to evaluate a company's ability to pay its short-term liabilities with its short-term assets, indicating liquidity.

Prepaid Items

Expenses paid in advance for goods or services to be received in the future.