Gilmore Corporation is investigating the possibility of adopting a lean thinking philosophy in its manufacturing facilities. The plant manager has done a cost-benefit analysis and has found that the costs of the lean production program exceed the benefits by $115,000. You analyze the situation and make some adjustments to the cost estimates. After doing your analysis, you find that costs still outweigh benefits by less than 5%. Which of the following choices are possible strategies managerial accountants could implement to enhance the operational effectiveness at the manufacturing facilities?
A)Consider dropping the plan.
B)Look for ways to lessen costs.
C)Re-evaluate the value of benefits.
D)All of the above should be considered.

Question

Quizplus · Accepted Answer

All of the above options should be considered. Dropping the plan may not be the best decision as lean thinking can lead to long-term benefits such as increased efficiency and reduced waste. However, looking for ways to lessen costs and re-evaluating the value of benefits can help to close the gap between costs and benefits, making the lean production program more feasible. A combination of these strategies may be necessary to enhance operational effectiveness at the manufacturing facilities.

Gilmore Corporation Is Investigating the Possibility of Adopting a Lean