Which of the following statements is true of lean accounting?
A) It is much complex than traditional product costing.
B) It does not always compute costs for individual products.
C) It omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods.
D) It compares value stream costs against costs that include costs of all purchased materials.

Question

Quizplus · Accepted Answer

Lean accounting is focused on providing relevant financial information to support lean manufacturing and continuous improvement efforts. It does not always compute costs for individual products, as this can lead to overproduction and waste. Instead, it analyzes total value stream costs and provides insights into areas for improvement.

Which of the Following Statements Is True of Lean Accounting