Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?
A)Standard costing variances encourage overproduction.
B)Distorted product costs may conceal the outcome of success of a lean system.
C)Traditional operational controls work against demand-pull systems.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the given statements are reasons why traditional costing approaches may not work in a lean manufacturing environment. Standard costing variances encourage overproduction, distorted product costs may conceal the outcome of success of a lean system, and traditional operational controls typically work against demand-pull systems. Therefore, none of these traditional costing approaches are compatible with lean manufacturing principles.

Which of the Following Is a Reason Traditional Costing Approaches