Introduction:. According To Brian Maskell, ‘Lean Accounting

We all know how important the accounting aspect of any business/organization is. It is basically the most important way to manage finances. Without proper accounting for all expenses and finances, a company and/or organization will definitely have a hard time being financially stable. In this paper we will discuss some foundational accounting principles and terminology

This paper provides a critical analysis of several alternative cost systems to traditional cost accounting systems. It then evaluates these alternatives in terms of how they might support, or not, companies that adopt a lean philosophy. An example of nonfinancial performance indicators that support a lean philosophy is offered in Tables 1 and 2. This discussion in the article

Lean accounting is organized differently than the cost accounting. Cost accounting uses departments, the product moves to the next department for completing that phase, and then on to the next department all the while material, labor, and factory overhead are accounted for separately in each department in order to control cost and give assessments where waste is happening. This helps management to implement processes to regulate losses and make changes to productivity. Unlike this traditional system, which has been used in the early 1900 's lean accounting, uses value streams. "A value stream includes everything that is done to create value for a customer and can be easily associated with the product or

Thirdly, many companies in order to be profitable need to be creative and innovative. Companies to increase value by cutting out wasteful actions that exist through those franchises which is referred to lean accounting. To the value chain at to collect both direct financial and no direct financial information.

Lean accounting is the common term used for changes important to a company’s accounting, organizing, measurement and executive processes to keep up lean manufacturing and lean thinking. There are two main purposes for Lean accounting .The first is the utilization of lean methods to the company’s accounting control, and measurement processes. This is same than applying lean methods to some other processes. The goal is to eliminate waste, free up limit, speed up the procedure, wipe out mistakes and defects, and make the procedure clear and understandable. The second purposes of lean accounting is to on a very basic level change the accounting, control, and measurement forms so they motivate lean change and improvement, give data that is suitable for control and decision-making give a understanding of customer worth, effectively survey the financial impact of lean improvement, and are themselves simple, visual, and law-waste.Based on (Maskell andKennedy 2007), the objectives of lean accounting are simple and have 4 objectives, 1. provide accurate, timely, and reasonable information to motivate lean transformation throughout the organization, and for decision making leading to expanded customer value, development, profitability, and income; 2. Use lean

What is a Balance Scorecard? A Balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan Harvard Business School and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced ' view of

This paper aims to debate, based on a literature review how relevant it is for companies to adopt the use of balanced scorecard as tool for measuring financial performance. The findings in literature shows that balanced scored restore the linkage between financial and non-financial measures in the operational and management control systems of most companies and helps them to achieve long-term strategic objectives. On the other hand, the use and importance of balanced scorecard has been evidenced through several studies but some companies still find it difficult and challenging to implement it because it suggests what to do

How lean versus traditional production might affect a management accountant trying to calculate a company’s costs. How would the information a management accountant would use to determine company costs change depending on type of production?

This course focuses on the strategic nature of management accounting and emphasizes the critical role that information plays in decision-making, strategy execution, and overall enhancement of a firm’s value. Primarily taught through case studies, this course will utilize and build upon the concepts studied in prior Management Accounting courses, and allow the students an opportunity to see how these concepts fit together. Selected readings

BSC as top down reflection of company’s mission and strategy - The Balance scorecard at corporate level provides the inputs for performance measurement at business unit level and

Other than ABC, balanced scorecard is also design for the change of the management accounting. According to Olve and Sjèostrand (2002) a balanced scorecard is a format for describing activities of an organisation through a number of measures for four perspectives: financial, customer, internal process

Just as with Lean Manufacturing, Lean Construction focuses on establishing value, as defined by the customer, it with the goal of constructing a product that delivers on that value. Thus, value must come before planning and design. (Mohammed).

Business aims at building value for its owners, customers and other stakeholders. The value of the output should exceed the costs of input in resources. Resources which make information to flows are reported in financial statements including the cash flow and income statements. Traditional accounting always gets concerned with reporting business financial terms about past performance.

There are primarily 5 principles of lean manufacturing [9]. Those 5 principles are as follows:

Fundamentally, Lean is about eliminating waste. Some waste is unavoidable, but the objective is to identify all activities that are non-value-added, and reduce as many as possible. General examples of waste include over-producing, waiting, defects/ rework, over-processing, inventory, motion, and transport. A few specific examples of waste sometimes found in financial services include: