Comparing Activity-Based Management (ABM) and Lean Operations All of the Following

question 144

Multiple Choice

Comparing activity-based management (ABM) and lean operations all of the following are correct except

• A) both identify value-adding and nonvalue-adding activities.
• B) ABM uses a more complex accounting system.
• C) both are activity-based systems.
• D) JIT focuses on the accuracy of cost assignment.

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Definitions:

Cash Inflows

Refers to the money received by a business from its operational, investment, and financing activities.

Sunk Cost

Costs that are already spent and cannot be retrieved or reimbursed.

Unrecoverable Cost

Expenses that have been incurred and cannot be recovered or refunded, also known as sunk costs.

Cash Flows

The total amount of money being transferred into and out of a business, project, or financial product.