One of the Key Elements of Lean Accounting Is the Use

question 98

Multiple Choice

One of the key elements of lean accounting is the use of the value stream income statement. Which of the following is not a characteristic of value stream income?

• A) Reduction in the need for allocations of indirect costs.
• B) Expansion of the scope of the cost object.
• C) Decreased use of direct-cost tracing.
• D) Focus on revealing financial benefits of lean manufacturing.
• E) Income-effects for individual families of products are revealed.

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues in a company during a specific period, indicating a financial loss.

Discontinue

To discontinue means to stop producing, selling, or providing a product or service, often permanently.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the resources they consume.

Traditional Systems

often refer to conventional or established procedures, techniques, or technologies that have been used over time, typically before newer alternatives.