A Company Using Lean Production Methods Likely Would Show Approximately

question 177

Multiple Choice

A company using lean production methods likely would show approximately the same net operating income under both absorption and variable costing because:

• A)ending inventory would be valued in the same manner for both methods under lean production.
• B)production is geared to sales under lean production and thus there would be little or no ending inventory.
• C)under lean production fixed manufacturing overhead costs are charged to the period incurred rather than to the product produced.
• D)there is no distinction made under lean production between fixed and variable costs.

---

Definitions:

Demand For Tomatoes

The desire and ability of consumers to purchase tomatoes at various prices, influenced by factors such as income, taste, and price of substitutes.

Lettuce Crop

Horticultural practice involving the cultivation of lettuce for consumption as a leafy green vegetable.

Flooding

An overflow of water that submerges land that is usually dry, usually caused by heavy rainfall or other hydrological phenomena.

Price Restrictions

Regulations or limitations placed on the pricing of goods and services, often to control inflation or protect consumers.