Implementing Lean ______

question 14

Multiple Choice

Implementing lean ______.

• A)may lead to increase in payroll costs
• B)may cause stress and discomfort for some employees
• C)may lead to usage of additional materials and resources
• D)may reduce production quality levels

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Definitions:

High-low Method

A cost accounting technique used to estimate variable and fixed costs based on the highest and lowest levels of activity within a given period.

Variable Cost

Costs that vary directly with the level of production or sales volume. They include raw materials, labor directly involved in production, and sales commissions.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales.

Mixed Cost

Mixed Cost refers to expenses that have both fixed and variable components, changing in total with activity level but also containing a static portion that remains constant.