The Goal of Lean Manufacturing Is to

question 307

Multiple Choice

The goal of lean manufacturing is to

• A) keep inventories of finished goods as high as possible.
• B) produce goods and services with less of everything that goes into the process.
• C) produce a very limited variety of goods.
• D) become more self-sufficient by producing major components rather than buying them.

---

Definitions:

Total Controllable Cost Variance

The difference between the actual controllable costs incurred and the budgeted controllable costs over a specific period.

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to the creation of a product or service.

Volume Variance

A financial term that represents the difference between the budgeted and actual volume of production, affecting costs and operational efficiency.

Volume Variance

The difference between the budgeted volume of production or sales and the actual volume, affecting revenue or costs.