Why Does Lean Accounting Work in a Lean Manufacturing Environment

question 20

Multiple Choice

Why does lean accounting work in a lean manufacturing environment?

• A)Standard costing variances encourage overproduction.
• B)Distorted product costs may conceal the outcome of success of a lean system.
• C)Traditional operational controls work against demand-pull systems.
• D)Single-value stream allows for direct tracing of costs to product

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Definitions:

Directors

Directors are individuals elected by the shareholders of a company to govern and make decisions on behalf of the corporation, overseeing its overall strategy and management.

Creditors

Individuals or institutions to whom money is owed.

Duty

A legal or moral obligation to do something or to refrain from doing something.

Creation

The action or process of bringing something into existence, often referred to in various contexts such as art, invention, and religious narratives.