Lean accounting is much simpler than traditional product costing because ________.
A) it compares value stream costs against costs that include costs of all purchased materials
B) it computes the cost of individual products
C) calculating actual product costs by value streams requires less overhead allocation
D) adding a larger markup on value stream costs to compensate for some of the excluded costs is easier than tracing all non value added costs

Question

Quizplus · Accepted Answer

Lean accounting focuses on eliminating non-value added costs and simplifying the costing process by grouping costs by value streams. This approach eliminates the need for overhead allocation and tracking costs for individual products, making the process much simpler than traditional product costing.

Lean Accounting Is Much Simpler Than Traditional Product Costing Because