The statement concerning lean accounting that is true is:
A) the focus is on achieving economies of scale in production
B) labour is considered to be a period cost and is treated as more fixed than variable
C) a perpetual inventory system needs to be implemented
D) all of the statements are true

Question

Quizplus · Accepted Answer

Lean accounting typically treats labor as a period cost rather than a product cost, reflecting its view of labor as more fixed in nature, especially in the short term. This approach contrasts with traditional accounting methods that might allocate labor costs to units of production. Lean accounting focuses on reducing waste and improving value to the customer, rather than primarily achieving economies of scale or necessitating a perpetual inventory system.

The Statement Concerning Lean Accounting That Is True Is