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.

---

Definitions:

Free Agent Bargaining

A negotiation process in which individuals or entities freely engage in discussions to reach mutually beneficial agreements, often used in reference to sports and employment contracts.

Single Buyer

A market situation where there is only one buyer for a particular product or service, influencing the market conditions and prices.

Input Market

Markets where firms purchase resources and services needed for the production process, such as labor, raw materials, and machinery.

Labor Union

An organization of workers formed to protect and further their rights and interests through collective bargaining.