Question

Accounting for lean operations requires fewer transactions because large batches of inventory are combined in a smaller number of transactions. combined material and conversion costs are transferred to finished goods. costs are transferred from department to department allowing for better controls in costs. costs are accumulated in one department and then transferred to the next department.

Answer 1

Answer:

Option B. Combined material and conversion costs are transferred to finished goods.

Explanation:

The reason is that the recording of the lean operations includes the transfer of the summation of conversion cost and the material cost to finished goods. And in this way we assign the costs to each product whose sale is then lowers the inventory and increases the cost of goods sold. At the same time we also record the related sales. So this is how accounting works.