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:

Organizational Processes

The set of activities, routines, procedures, and standards that are carried out within an organization to ensure its functioning and goal achievement.

External Monitoring

The process of observing and analyzing external trends, forces, or competitions that could impact an entity.

Lower-Level Managers

Managers who are responsible for the daily operations of a company, focusing on managing individuals or small teams and implementing the policies and plans set by higher-level management.

Front Line Workers

Individuals directly involved in the delivery of services or production of goods, often directly interacting with customers or clients.