Acct 4100 Final Exam Questions and Answers: Lean Accounting and Sustainability, Exams of Accounting

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Acct 4100 Final Exam Questions with correct

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TAKT time - ANSWER-rate at which customers demand product 3 Ps of sustainability - ANSWER-people, planet, and profits 5 Ss of lean - ANSWER-sort, straighten, shine, standardize, sustain principles of lean include - ANSWER-value stream, value, perfection, empowerment lean accounting may include - ANSWER-*modifying financial statements to include non-financial info *changing inventory valuation techniques organizing costs by value steam objectives of a lean enterprise - ANSWER-accelerate revenue growth *accelerate growth in profitability increase capacities In lean, value is described by looking at whose perspective - ANSWER-customer Benefits of "Plain English" P&L statements include - ANSWER-simple to use and understand *use actual costs *highlight inventory changes *avoid allocations integration of sustainability and the BSC - ANSWER-they can be integrated by adding a 5th perspective to the BSC

In class, we discussed this industry leader in sustainability reporting - ANSWER-Nokia this makes sustainability difficult to manage - ANSWER-benefits are difficult to monetize the categories of environmental costs - ANSWER-prevention, appraisal, internal failure and external failure In a lean system, decision making is made at which level? - ANSWER-value stream managers and cell teams to achieve the lean principle of empowerment, the following is necessary - ANSWER-*training must be appropriate *decision-makers must be held accountable there must be a clear understanding of goals and strategy NOT functional managers must be given authority positive effects of lean may be invisible to management because - ANSWER-traditional accounting motivates over producing and average standard costs will likely increase If companies do not have a company-wide BSC - ANSWER-it may be beneficial to design a BSC specifically for sustainability standard costs - ANSWER-are historically based *are difficult to understand *encourage overproduction *are generally outdated *do not reflect actual costs *do not support continuous improvement *focus on variances, rather the processes

*mgt makes all decisions *controlled by transaction reporting *standard costing system numbers are what count lean thinking - ANSWER-value streams *single piece flow *pull system *empowered teams make most decisions *controlled by visuals on plant floor *VSC *process is what counts