Which of the following statements best defines lean accounting?
A) an accounting system that comprises a single database that collects data and feeds it into software applications supporting all of a company's business activities
B) a costing method that supports creating value for the customer by costing the entire value stream thereby eliminating waste in the accounting process
C) an accounting system that omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods
D) an integrated costing system covering a company's accounting, distribution, manufacturing, purchasing, human resources, and other functions

Question

Quizplus · Accepted Answer

Lean accounting is a costing method that focuses on eliminating waste in the accounting process, which in turn helps to create value for the customer. This is achieved by costing the entire value stream, rather than individual products or services. By doing so, it is possible to identify and eliminate activities that do not add value to the customer, which ultimately helps to increase efficiency and reduce costs.

Which of the Following Statements Best Defines Lean Accounting