Which of the Following Is Not a Characteristic of a Lean

question 106

Multiple Choice

Which of the following is not a characteristic of a lean accounting system?

• A) Calculated costs are used in setting product prices.
• B) Reporting is done frequently (often weekly, or even daily).
• C) Product aggregation—product costs are determined at the value-stream level.
• D) Use of average costs for products in each value stream.
• E) Includes, in the form of box score report, nonfinancial as well as financial performance results.

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Definitions:

Owner/Manager-Operated

A business model where the owner actively manages the day-to-day operations of the company.

Negotiated Price Approach

The negotiated price approach involves establishing the price of a product or service through direct negotiation between sellers and buyers, rather than using fixed prices or market rates.

Transfer Price

The price at which goods and services are traded between departments within the same company or between subsidiaries, often used for budgeting and tax purposes.

Responsibility Center

A unit within an organization tasked with specific duties and responsibilities, where performance is measured based on predetermined financial and operational metrics.