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Lean Accounting

By: Ade Asefeso MCIPS MBA
Narrated by: Samuel Fleming
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Summary

Lean Accounting supports the principle of eliminating waste and streamlining the business processes to create maximum value. So lean management accounting metrics is all about breaking away from traditional cost accounting cost objects like product or job and is driven by a new cost object 'Value Stream.' As part of lean accounting exercise, we define the scope of value stream cost object and map the business process activities to this cost object. Lean accounting helps organizations going through lean transformation to develop their management accounting systems to support the lean philosophy. Traditional accounting systems (particularly standard costing) result in decisions which are anti-lean.

©2013 Ade Asefeso MCIPS MBA (P)2013 Ade Asefeso MCIPS MBA
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Good Overview of Lean Accounting

Great way to separate the different silos of costs in a small manufacturing business, making it simple to see if your sales pricing is matched to your manufacturing cost, fixed costs and Ops costs.

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