Lean Training Quiz On Finance Module! Trivia
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According to Lean accounting, the price is determined by the _______________.
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Accounting Department
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Customer
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Marketing Department
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Government
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Lean training quiz on finance module! Lean accounting is a way in which the business changes its accounting module so that it can fit the lean manufacturing method. There are different changes that are evident when traditional accounting systems are compared to lean accounting techniques such as using less time and money associated with the tradition method. See how well See moreyou understand lean accounting by taking the quiz. All the best!
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- 2.
According to Lean accounting, the way we increase profit is by:
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Raising the price
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Decreasing pay
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Lowering costs
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Creating more cushion in the budgets
Correct Answer
A. Lowering costsExplanation
Since we do not touch price (since the price is determined by the customer), we increase profit by lowering costs through the elimination of waste.Rate this question:
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- 3.
As a company implements Lean, it’s financial statements often show a temporary hit to the bottom line as inventory moves to the expense section of the income statement, lowering profits.
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True
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False
Correct Answer
A. TrueExplanation
This is one reason Lean accounting has evolved – to more accurately show the benefits of Lean improvements in companies.Rate this question:
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- 4.
Taiichi Ohno said: “Costs do not exist to be calculated. Costs exist to be ________.”
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Defined
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Measured
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Analysed
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Reduced
Correct Answer
A. ReducedExplanation
While we do need to quantify waste to remove it and to be able to measure the benefits, a lot of accounting practices are processing and overproduction waste. Lean accounting seeks to simplify accounting to ensure that metrics are visible and transparent to ALL.Rate this question:
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- 5.
As a product or service moves through the production system, the cost of correcting an error multiplies by 10. This is known as the _______ rule.
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DMARIC
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1-10-100
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Pareto
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80 / 20
Correct Answer
A. 1-10-100Explanation
The 1-10-100 rule states that rework waste gets more and more expensive to fix as it moves downstream.Rate this question:
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- 6.
Space can be maximised by reducing what kind of waste(s)?
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Motion
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Inventory
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Waiting
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Re-work
Correct Answer(s)
A. Motion
A. InventoryExplanation
Motion & inventory are the two wastes that most lead to wasted space. Inventory just simply takes up space. And, if you can reduce motion waste and place people and their machines in locations to ensure flow, you simply need less space! Maximizing space can save a lot of money.Rate this question:
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- 7.
A more detailed and thorough version of the Plan, Do, Check Act / Kaizen cycle that we use for quantifying and implementing process improvement activities is:
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1-10-100
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DMARIC
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Pareto
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Six Sigma
Correct Answer
A. DMARICExplanation
Define, Measure, Analyse, Recommend, Improve (or Implement), Control. It is important to set a scope, measure the processes within it, and analyze the work (including root cause analysis) before recommending process improvement activities. We need to be able to demonstrate ROI and to measure the future state based on the as-is benchmark.Rate this question:
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- 8.
Another term for “the law of the vital few” is _______.
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The Pareto principle
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Lean Accounting
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The 1-10-100 Rule
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The Customer Service Iceberg
Correct Answer
A. The Pareto principleExplanation
The Pareto principle, also known as the 80 / 20 rule, asserts that 80% of the effects come from 20% of the causes. Pareto analysis is used to target products, service families or processes for improvement initiatives.Rate this question:
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- 9.
A dollar saved is a whole dollar just as a dollar earned is a whole dollar.
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True
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False
Correct Answer
A. FalseExplanation
A dollar saved IS a whole dollar but a dollar earned is NOT a whole dollar; To make a dollar, we need to spend money (the cost to sell).Rate this question:
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- 10.
The cost to serve equals the hourly rate an employee is paid.
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True
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False
Correct Answer
A. FalseExplanation
The cost to serve includes labor, other compensation, training, management infrastructure, and many other inputs.Rate this question:
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Current Version
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Mar 17, 2023Quiz Edited by
ProProfs Editorial Team -
Sep 21, 2009Quiz Created by
Lisaolszewski
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