One supports the other – A lean manufacturing environment benefits from lean accounting practices

Description

Abstract: Lean manufacturing is nothing new, but many don’t know that lean accounting is crucial to operating in a lean manufacturing environment. Lean accounting focuses on two goals: 1) converting financial statements into “plain English,” and 2) eliminating waste by taking the focus off the minutiae. This article describes some of the advantages of lean accounting vs. standard cost accounting, along with some of the disadvantages. A sidebar discusses the status of lean accounting in university curricula.