Question

A goal of performance reporting in a lean accounting system is Select one: A. to show which producing departments are using approximately the same or different percentage of services. B. to provide information to managers for constant improvement in cost efficiency and quality. C. to meet the reporting standards for generally accepted accounting principles. D. to provide full disclosure to the public about manufacturing costs and efficiencies.

Answer 1

Answer: B. to provide information to managers for constant improvement in cost efficiency and quality.

Explanation: Lean accounting is the collection of principles and processes that provide numerical feedback for manufacturers implementing lean manufacturing and lean inventory practices.

The purpose of Lean Accounting is to provide vital operational and financial information in a way that motivates lean transformation and improvement.