Gilmore Corporation is investigating the possibility of adopting a lean thinking

Question

Gilmore Corporation is investigating the possibility of adopting a lean thinking philosophy in its manufacturing facilities. The plant manager has done a cost-benefit analysis and has found that the costs af the lean production program exceed the benefits by $115,000. You analyze the situation and make some adjustments to the cost estimates. After doing your analysis, you find that costs still outweigh benefits by less than 5%. Which of the following choices are possible strategies managerial accountants could implement to enhance the operational effectiveness at the manufacturing facilities? OA Re-evaluate the value of benefits O B. Look for ways to lessen costs. OC. Consider dropping the plan OD. All of the above should be considered.

Explanation / Answer

The correct option is D. All of the above should be considered

To enhance the operational effectiveness at the manufacturing facilities, following possiblities could implement:

- Re-evaluate the value of benefits

- Look for ways to lessen costs (the ways to lessen costs are the techniques which can be used to decrease the cost which will benefit the company)

- In case all the possibilities are failed to decrease costs, consider dropping the plan since there is no benefit to work at loss.

Hence, all the possibilities could consider to enhance effectiveness of operation.

-

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.