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.

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Definitions:

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event or set of circumstances.

Damage Awards

Monetary compensation determined and ordered by a court for losses or injuries suffered as a result of unlawful actions or negligence by another party.

EPA Fine

A penalty imposed by the Environmental Protection Agency for violations of environmental laws or regulations.

Litigation

The process of taking legal action or resolving disputes in court.