Which of the Following Actions Is Not Consistent with Lean

question 9

Multiple Choice

Which of the following actions is not consistent with lean?

• A)Introducing dozens of new clothing lines each year in smaller quantities
• B)Publishing texts and other books on demand
• C)Reducing inventory levels by asking suppliers to hold the inventory instead
• D)All of the above are consistent with the lean philosophy

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Definitions:

Accrual Basis

Accrual Basis is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid.

Expenses Recognized

Costs that have been incurred in an accounting period and are matched with revenues in the same period, affecting a company's income statement.

Expenses Paid

Outflows or other using-up of assets or incurring of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.

Liabilities

Liabilities refer to the financial obligations or debts that a company owes to others, which must be paid back in the future.