The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as __________?
Correct answer: C. lean accounting
- A. economic accounting
- B. back-flush accounting
- C. lean accounting
- D. lead accountingHire An Accountant
Explanation
Lean accounting evaluates performance across the entire value stream so that customer value, waste reduction, and flow are emphasised. It is not limited to separate departments or individual products.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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