Explore BrainMass
Share

The Lowdown on Lean Accounting

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Summary of article:
The Lowdown on Lean Accounting
van der Merwe, Anton; Thomson, Jeffrey. Strategic Finance 88. Ã?8 (Feb 2007): 26-33.

The article criticizes the Lean Accounting movement. Summarize three of the author's arguments.

© BrainMass Inc. brainmass.com October 25, 2018, 6:42 am ad1c9bdddf
https://brainmass.com/business/lean-manufacturing/the-lowdown-on-lean-accounting-472079

Solution Preview

Summary of article:
The Lowdown on Lean Accounting
van der Merwe, Anton; Thomson, Jeffrey. Strategic Finance 88. Ã?8 (Feb 2007): 26-33.

The authors of "The Lowdown on Lean Accounting" are concerned about the proponents of Lean Accounting getting overly enthusiastic about the benefits of lean accounting and cite several weaknesses of Lean Accounting for decision-making and financial reporting. While the authors admit that manufacturing, particularly the "factory floor," gains greatly from a practice of focusing on materials and bottlenecks and throwing conversion costs into a pile of "unavoidable" and thus ignorable costs, the practice may not extend benefits through the full ...

Solution Summary

Your tutorial is 401 words and explains that the author believe lean accounting has many merits but wide scale adoption is premature. Three main reasons are given.

$2.19
See Also This Related BrainMass Solution

Lean Accounting and Waste

Please response to question one in 250 words and question two in 150 words

1. Lean manufacturing processes, such as Six Sigma or Kaizen, are popular because they reduce waste, thereby increasing profits. Still, accountants face several issues when switching to a lean manufacturing system. To begin, read the article The Lowdown on Lean Accounting and describe some of the issues accountants face when switching to a lean manufacturing system. Also identify some of the ways lean manufacturing reduces scrap, waste, and spoilage and how the accounting in these companies reflects the increased vigilance in preventing scrap, waste, and spoilage. Are there any downsides to enacting lean manufacturing from an accounting standpoint? If so, describe them.

2. Reflect on the advantages and disadvantages of accounting in a lean manufacturing environment, as described

View Full Posting Details