Explain What Is Meant by the "Lean Business Model" and Why

question 190

Essay

Explain what is meant by the "lean business model" and why many businesses have adopted it.

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Definitions:

Profit Margin

A financial metric that measures the amount by which revenue from sales exceeds costs in a business, expressed as a percentage of revenue.

Periodic Reporting

The process of preparing and presenting financial statements at regular intervals, typically quarterly or annually.

Time Period Assumption

An accounting principle that allows the business activities to be divided into artificial time periods for financial reporting.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.