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.

---

Definitions:

Multiple Market Segments

The practice of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups with similar needs or characteristics.

Geographic Markets

Market segments defined by geographic areas where customers share similar needs and characteristics.

Increased Sales

An upward trend in the quantity of products or services sold, indicating growth in revenue for a business.

Business Firm

An organization engaged in commercial, industrial, or professional activities with the aim of generating profits.