Lean Accounting
Finance
Lean Accounting
Accounting and management reporting practices designed to support lean decisions, value streams and simple operational control.
Examples
- 01With lean accounting, the plant replaces 40 pages of monthly variance reports with a one-page weekly profit and loss for each value stream.
- 02Value stream managers review lean accounting reports with their teams, using simple figures such as sales, material cost and conversion cost.
- 03Lean accounting makes the cash effect of an inventory reduction visible, whereas standard costing had shown it as a loss from lower absorption.