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.

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Definitions:

Consuming Goods

Goods that are used by consumers and are typically expended when used, opposed to durable goods which are designed to last for a prolonged period.

Generating Revenues

Generating revenues refers to the process through which a business earns money by selling goods or providing services.

Expenses

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.

Increase Side

In accounting, it refers to the side of a ledger account (debit or credit) where increases are recorded, depending on the nature of the account.