The Main Goal of the Lean Business Model Is the Elimination

question 66

True/False

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

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Definitions:

Employee Salaries

Fixed payments made regularly to employees for their work, regardless of hours worked.

Budgeting

The process of creating financial plans for a set period, including estimating revenues, expenses, and capital needs.

Activity Variance

The difference between the budgeted costs based on expected activity levels and the actual costs incurred, usually used in flexible budgeting.

Net Operating Income

The income from a company's operations after deducting operating expenses, excluding revenue and expenses from non-operational activities.