When lean systems are implemented:
A)Variable costs tend to increase,while fixed costs tend to decrease.
B)Fixed costs tend to increase,while variable costs tend to decrease.
C)Fixed and variable costs both tend to decrease.
D)Contribution margin tends to decrease.

Question

Quizplus · Accepted Answer

One of the main goals of implementing lean systems is to eliminate waste and streamline processes, which often results in reduced costs. This reduction in costs can come from both fixed and variable costs decreasing. Therefore, choice C is the best answer.

When Lean Systems Are Implemented