Accounting for Lean Operations Requires Fewer Transactions Because

question 113

Multiple Choice

Accounting for lean operations requires fewer transactions because

• A) large batches of inventory are combined in a smaller number of transactions.
• B) costs are accumulated in one department and then transferred to the next department.
• C) combined material and conversion costs are transferred to finished goods.
• D) costs are transferred from department to department allowing for better controls in costs.

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Definitions:

Past Transaction

An action or activity, specifically financial or commercial, that has occurred in the past.

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders, calculated as total assets minus total liabilities.

Net Assets

The difference between total assets and total liabilities, representing the owner's equity in a company.