In a lean accounting system, costs are assigned to products by:
A) Tracing costs to product value streams as much as possible.
B) Allocating common costs to various individual products.
C) Directly tracing costs to a single product as much as possible.
D) Assigning the appropriate standard costs to individual value streams.

Question

Quizplus · Accepted Answer

In a lean accounting system, the focus is on tracing costs to product value streams as much as possible to identify areas of waste and inefficiency. Allocating common costs to individual products or directly tracing costs to a single product is not the best approach in lean accounting. Moreover, assigning standard costs to individual value streams is not relevant as lean accounting emphasizes on actual costs.

In a Lean Accounting System, Costs Are Assigned to Products