In a lean environment, many overhead costs are assigned to
A)products using driver tracing.
B)products as directly traceable costs.
C)products using allocation methods.
D)costs using plantwide overhead rates.

Question

Quizplus · Accepted Answer

In a lean environment, overhead costs should be minimized and only directly traceable costs should be assigned to products. This helps to eliminate waste and improve efficiency. Using driver tracing, allocation methods, or plantwide overhead rates may assign too much overhead cost to products, leading to inaccurate pricing and potentially reducing competitiveness. Direct tracing ensures that costs are accurately assigned only to the products that require those costs to be incurred.

In a Lean Environment, Many Overhead Costs Are Assigned to