Which of the Following Statements Is True of Lean Accounting

question 92

Multiple Choice

Which of the following statements is true of lean accounting?

• A) It is much complex than traditional product costing but produces more accurate product unit costs.
• B) It does not always compute costs for individual products but does emphasize product costs by value stream.
• C) It omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods.
• D) It is acceptable under GAAP.

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Definitions:

Depository Institution

A financial institution that accepts deposits from the public and provides credit facilities and other financial services.

Pension Fund

A pool of assets forming an independent legal entity that is used to generate stable growth for future pension payments.

Legal Tender

The money that is officially recognized by a government as a valid form of payment that must be accepted for debts.

Commodity Money

Money that has intrinsic value, such as gold or silver, which can serve as a medium of exchange, a unit of account, and a store of value.