Value Stream Income Statements, Which Are Part of a Lean

question 76

Multiple Choice

Value stream income statements, which are part of a lean accounting system, have all the following characteristics except:

• A) They report segment profits in the form of value streams.
• B) They attempt to separate out the short-term effects of reductions in inventory.
• C) They separate traceable from non-traceable costs on the income statement.
• D) They calculate average costs for units in each value stream.
• E) They eliminate the need to deal with indirect costs.

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Definitions:

Corporations

Legal entities that can enter into contracts and own property. They are taxed at a lower rate than individuals and their owners are normally not liable for the corporation’s debt or any harm it may cause the public.

Consensus Crimes

Crimes that are universally condemned by society, such as murder or theft, and seen as inherently wrong.

Criminals

Persons who engage in activities that breach legal codes and are thus subject to judicial indictment and punishment; this definition reiterates their adversarial role against societal norms and laws.

Prison

An institution for the confinement and rehabilitation of individuals who have been convicted of crimes.