Gilmore Corporation Is Investigating the Possibility of Adopting a Lean

question 195

Multiple Choice

Gilmore Corporation is investigating the possibility of adopting a lean thinking philosophy in its manufacturing facilities. The plant manager has done a cost-benefit analysis and has found that the costs of the lean production program exceed the benefits by $115,000. You analyze the situation and make some adjustments to the cost estimates. After doing your analysis, you find that costs still outweigh benefits by less than 5%. Which of the following choices are possible strategies managerial accountants could implement to enhance the operational effectiveness at the manufacturing facilities?

• A)Consider dropping the plan.
• B)Look for ways to lessen costs.
• C)Re-evaluate the value of benefits.
• D)All of the above should be considered.

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Definitions:

Dependent Variable

In experimental research, it's the variable that is being tested and measured.

MMPI Validity Scales

Measures within the Minnesota Multiphasic Personality Inventory designed to assess the test taker’s approach to the test, such as their truthfulness, consistency, and engagement.

F Scale

A personality test designed to measure authoritarian characteristics of an individual.

Z Scale

A standard score scale in statistics that measures how many standard deviations an element is from the mean of the population.