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Q12. Lean accounting incorporates which of the following? A) Total Quality Management B) The Theory of Constraints C) Just-in
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Answer :

1. Opttion - C, Just in time

Explanation : Lean accounting focuses on elimination of waste and non value added activities. It mainly focuses on value streams.

Lean accounting works efficiently with the help of Just in time inventory processes which increase efficiency and decreases waste by receiving goods only as they are needed in the production processes, which reduces cost.

2. Opttion - A, Operational risk

Explanation : Operational risk is a risk of loss internal strategies, policies and procedures. This mainly emerges from the breakdown of internal processes and procedures. It mainy includes syatem erroe, employee frauds etc.

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