Which of the Following Results in Fewer Transactions in Lean

question 96

Multiple Choice

Which of the following results in fewer transactions in lean accounting?

• A) all manufacturing costs are combined in one account called Raw and In Process Inventory.
• B) the distinction between direct and indirect costs is eliminated.
• C) there is less movement of inventory between departments.
• D) All of the above.

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Definitions:

Stockholders

Individuals or entities that own shares of stock in a corporation, giving them rights to dividends and a vote in company matters.

Policies

Statements of principle and guidelines, formulated or adopted by an organization, to direct and limit actions in pursuit of its objectives.

Paid-In Capital

Paid-in capital is the amount of money raised by a company in exchange for shares of its stock.

Investments

Investments represent the allocation of resources (such as time, money, or effort) with the expectation of generating an income or profit.