Lean Accounting Is Much Simpler Than Traditional Product Costing Because

question 66

Multiple Choice

Lean accounting is much simpler than traditional product costing because ________.

• A) it compares value stream costs against costs that include costs of all purchased materials
• B) it computes the cost of individual products
• C) calculating actual product costs by value streams requires less overhead allocation
• D) adding a larger markup on value stream costs to compensate for some of the excluded costs is easier than tracing all non value added costs

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Definitions:

Rental Price

The amount of money paid by a tenant to a landlord for the use of rental property, such as an apartment, house, or commercial space, for a specified period.

Labor Market

The supply of and demand for labor, where employment levels and wages are determined.

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold, distinct from money markets for short-term funds.

Stock Of Capital

The total value of all productive assets owned by a firm or country, including buildings, machinery, and equipment, that can be used to produce goods and services.