Value Stream Costing
Finance
Value Stream Costing
Lean accounting method that accumulates costs by value stream rather than complex product-level allocations.
Examples
- 01With value stream costing, all costs of the pump value stream, including its own maintenance and planning staff, are collected in one report.
- 02The value stream manager reviews value stream costing figures weekly with the team, using average cost per unit.
- 03After a cell layout cuts walking and waiting, value stream costing shows the lower cost per unit within weeks, without complex allocations.