In a Lean Accounting System, Costs Are Assigned to Products

question 84

Multiple Choice

In a lean accounting system, costs are assigned to products by:

• A) Tracing costs to product value streams as much as possible.
• B) Allocating common costs to various individual products.
• C) Directly tracing costs to a single product as much as possible.
• D) Assigning the appropriate standard costs to individual value streams.

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Definitions:

Justification of Effort

A concept in social psychology suggesting that individuals assign greater value to outcomes they have put effort into achieving.

Mere Exposure Effect

A psychological phenomenon in which people tend to develop a preference for things merely because they are familiar with them.

Cognitive Dissonance

The psychological unrest felt by an individual who simultaneously maintains two or more conflicting beliefs, ideas, or values.

Door-In-The-Face

A persuasion technique whereby a large, unreasonable request is first made knowing it will be refused, so that a smaller, more moderate request is more likely to be accepted.