Lean Accounting Is Much Simpler Than Traditional Product Costing Because

question 66

Multiple Choice

Lean accounting is much simpler than traditional product costing because ________.

• A) it compares value stream costs against costs that include costs of all purchased materials
• B) it computes the cost of individual products
• C) calculating actual product costs by value streams requires less overhead allocation
• D) adding a larger markup on value stream costs to compensate for some of the excluded costs is easier than tracing all non value added costs

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Definitions:

Cognitive Processes

Mental actions involved in acquiring, processing, and storing knowledge, such as perception, memory, and reasoning.

Cognitive Processes

Mental actions or operations that are involved in understanding, processing, and storing information, including reasoning, memory, attention, and language.

Classical Conditioning

A pairing process in learning that involves two stimuli; initially, the response is provoked by the second stimulus but over time, the first stimulus provokes the response on its own.

CS-US Associations

The learned associations between a conditioned stimulus (CS) and an unconditioned stimulus (US) in classical conditioning.