Which of the following statements is true of lean accounting?
A) It is much complex than traditional product costing but produces more accurate product unit costs.
B) It does not always compute costs for individual products but does emphasize product costs by value stream.
C) It omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods.
D) It is acceptable under GAAP.

Question

Quizplus · Accepted Answer

Lean accounting focuses on value stream costing rather than individual product costing. It simplifies the accounting process by eliminating non-value adding activities such as journal entries between the purchase of direct materials and sale of finished goods. It is acceptable under GAAP as long as proper cost allocation and reporting are maintained.

Which of the Following Statements Is True of Lean Accounting