Which of the Following Is Not a Characteristic of a Lean

question 75

Multiple Choice

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

• A) Costs in the system are organized according to value streams.
• B) The system includes both financial and nonfinancial performance indicators.
• C) It is most appropriate for firms operating in dynamic and competitive environments.
• D) The system incorporates the use of standard costs and standard cost variances.
• E) The overall intent of the system is to more accurately reflect improvements associated with lean manufacturing.

Understand the concept of accounting profit versus economic profit.

Recognize and articulate the difference between "either-or" and "how much" decisions.

Calculate opportunity costs and understand their relevance to economic and business decisions.

Differentiate between explicit and implicit costs in short-run total cost calculations.

---

Definitions:

Performance-Based Pay System

A compensation system where an employee's pay is based on their performance and achievements rather than a fixed salary.

Strategic Objectives

Goals set by an organization, designed to guide its long-term direction and ensure its growth, sustainability, and relevance in the market.

Attracting

The process of drawing interest or causing someone or something to be drawn in, often used in the context of attracting talent or customers.

Retaining

The process of keeping something in possession or continuing to have something, such as employees or information.