Lean Thinking Is More About Cost Containment Than About Customer

question 31

True/False

Lean thinking is more about cost containment than about customer focus.

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Definitions:

Cash Discounts

The amount by which a seller is willing to reduce the invoice price in order to be paid immediately, rather than in the future. A cash discount might be 2/10, net 30, which means a 2% discount if the bill is paid within 10 days, otherwise the entire amount is due within 30 days.

Delayed Payment

Delayed Payment is a payment made after the originally agreed-upon due date, often subject to additional fees or interest charges.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers, the terms of credit to offer, and how to collect payments.

Accounts Receivable

Money owed to a company by its debtors for goods or services delivered but not yet paid for.