Which of the Following Is True in Regards to a Lean

question 35

Multiple Choice

Which of the following is true in regards to a lean accounting system?

• A)The cost of people with specialized skills, such as industrial engineers, are allocated to all manufacturing cells based on an activity driver.
• B)Workers are multiskilled and responsible for setting up equipment, maintaining equipment, and operating equipment.
• C)Implementing a value stream system will require more workers.
• D)Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities.

Understand the concept of self-managed teams and their operational dynamics.

Understand the concept of homemade leverage and its practical implications for individual investors.

Comprehend and explain the Modigliani-Miller Propositions I and II related to firm value, cost of capital, and financial leverage.

Recognize the implications of the static theory of capital structure for firm valuation and optimal capital structure.

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Definitions:

Operating Activities

Business actions directly related to the production, selling, and delivery of a company's goods and services, reflected in its cash flow.

Cash Flow

The movement of funds into and out of a business or project, critical for maintaining operations and investment activities.

Operating Section

Part of a company's financial statement (specifically, the cash flow statement) that reports on the cash activities related to its primary operations, such as cash receipts and payments from goods and services.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be consumed or converted into cash within a year.