FUNDAMENTAL ACCOUNTING PRINCIPLES
FUNDAMENTAL ACCOUNTING PRINCIPLES
25th Edition
ISBN: 9781264303236
Author: Wild
Publisher: MCG
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Chapter D, Problem 6DQ
To determine

Concept:

Lean Management and Lean Techniques:

Lean management is a management technique which places emphasis on elimination of waste and unproductive activities with a view to increase and enhance productivity.

Lean management aims to reduce costs, defects, storage of inventory and waste in the form of unproductive activities.

Lean techniques include various methods such as Kaizen, Poka-Yoke, Kanban, 5S etc. which aim to identify and eliminate waste in the various processes of the organization such as Manufacture, Selling and Distribution, Supply chain management etc.

If amazon can use lean management techniques

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Question 1. Pearl Leasing Company agrees to lease equipment to Martinez Corporation on January 1, 2025. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2 The cost of the machinery is $541,000, and the fair value of the asset on January 1, 2025, is $760,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000, Martinez estimates that the expected residual value at the end of the lease term will be $45,000. Martinez amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2025. 5. The collectibility of the lease payments is probable. 6. Pearl desires a 10% rate of return on its investments. Martinez's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown.  Annual rental payment is…
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