When Lean Production Methods Are Introduced,the Difference in Operating Income

question 22

True/False

When lean production methods are introduced,the difference in operating income calculated using the absorption and variable costing methods is reduced.

---

Definitions:

EPS

Stands for Earnings Per Share, a financial ratio indicating the amount of income each share of stock represents, serving as an indicator of a company's profitability.

P/E Ratio

The price-to-earnings ratio is a measure of a company's current share price relative to its per-share earnings.

Market Price

The current price at which an asset or service can be bought or sold, determined by supply and demand dynamics in the market.

Net Earnings

Net earnings, also known as net income, represent the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.