Lean Training Quiz On Finance Module! Trivia

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Quizzes Created: 5 | Total Attempts: 867
| Attempts: 120
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  • 1/10 Questions

    According to Lean accounting, the way we increase profit is by:

    • Raising the price
    • Decreasing pay
    • Lowering costs
    • Creating more cushion in the budgets
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About This Quiz


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 you understand lean accounting by taking the quiz. All the best!

Lean Training Quiz On Finance Module! Trivia - Quiz

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  • 2. 

    According to Lean accounting, the price is determined by the _______________.

    • Accounting Department

    • Customer

    • Marketing Department

    • Government

    Correct Answer
    A. Customer
    Explanation
    The customer determines value, so the customer sets the price.

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  • 3. 

    Taiichi Ohno said: “Costs do not exist to be calculated. Costs exist to be ________.”

    • Defined

    • Measured

    • Analysed

    • Reduced

    Correct Answer
    A. Reduced
    Explanation
    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.

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  • 4. 

    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.

    • DMARIC

    • 1-10-100

    • Pareto

    • 80 / 20

    Correct Answer
    A. 1-10-100
    Explanation
    The 1-10-100 rule states that rework waste gets more and more expensive to fix as it moves downstream.

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  • 5. 

    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.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    This is one reason Lean accounting has evolved – to more accurately show the benefits of Lean improvements in companies.

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  • 6. 

    Another term for “the law of the vital few” is _______.

    • The Pareto principle

    • Lean Accounting

    • The 1-10-100 Rule

    • The Customer Service Iceberg

    Correct Answer
    A. The Pareto principle
    Explanation
    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.

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  • 7. 

    The cost to serve equals the hourly rate an employee is paid.

    • True 

    • False

    Correct Answer
    A. False
    Explanation
    The cost to serve includes labor, other compensation, training, management infrastructure, and many other inputs.

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  • 8. 

    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:

    • 1-10-100

    • DMARIC

    • Pareto

    • Six Sigma

    Correct Answer
    A. DMARIC
    Explanation
    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.

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  • 9. 

    A dollar saved is a whole dollar just as a dollar earned is a whole dollar.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    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).

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  • 10. 

    Space can be maximised by reducing what kind of waste(s)?

    • Motion

    • Inventory

    • Waiting

    • Re-work

    Correct Answer(s)
    A. Motion
    A. Inventory
    Explanation
    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.

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  • Current Version
  • Mar 17, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 21, 2009
    Quiz Created by
    Lisaolszewski
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