Under a lean accounting approach, costs that are not directly traceable to the activities and outcomes of a value stream are:
A) Absorbed by work-in-process and finished goods inventory accounts.
B) Charged against revenues as they are incurred.
C) Charged to the value stream using a predetermined overhead rate.
D) Delayed in inventory and only charged against revenue when products are sold.

Question

Quizplus · Accepted Answer

Under a lean accounting approach, costs that are not directly traceable to the activities and outcomes of a value stream are charged against revenues as they are incurred, rather than being allocated to inventory or absorbed using predetermined overhead rates. This approach aims to provide a more accurate reflection of the costs associated with generating revenue.

Under a Lean Accounting Approach, Costs That Are Not Directly