The Ultimate Goal of Lean Operations Is to Have

question 56

Multiple Choice

The ultimate goal of lean operations is to have:

• A) no in-process inventories.
• B) cross-trained workers capable of handling every process.
• C) a smooth, rapid flow of materials through the system.
• D) no setup times.
• E) all of the choices.

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Definitions:

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition, not adjusted for inflation or changes in market value.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company with its subsidiaries, presenting it as if the group is a single entity.

Entity Principle

The Entity Principle is an accounting concept stating that a business must be accounted for separately from its owner or any other business entity.

Revenues Earned

Income that has been generated from business activities and is recognized once the service has been provided or the goods have been delivered.