Which of These Is Not Associated with the Lean Accounting

question 19

Multiple Choice

Which of these is not associated with the lean accounting philosophy?

• A) Reducing transaction processing steps
• B) Refocusing the performance measurement system to emphasise social controls such as training
• C) Centralising the organisational structure
• D) All are associated with the lean accounting philosophy

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the profitability of a company's core business activities.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor involved.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Beginning Inventory

The value of all products, goods, and materials in stock at the start of an accounting period.