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Importance and benefits of lean accounting

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Lean accounting described in 500 words or more please.

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The answer to this problem explains the importance and benefits of lean accounting. The references related to the answer are also included.

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Lean accounting is a system of accounting that supports lean manufacturing and lean thinking. The new system of accounting is required because lean improvements show cost increases when standard costing is used to apply labor and overhead costs. Lean accounting supports lean enterprise. It is a system that measures and motivates excellent business practices in the lean enterprise. Lean accounting provides accurate, timely, and understandable information that motivates lean transformation throughout the organization. For example, it enables the supervisor to see the positive effects of lean strategy. Lean accounting enables the use of lean tools to reduce waste and at the same time enables full financial control. Lean accounting supports lean culture by improving investment in people, giving information that is relevant and actionable, and empowering continuous improvement at every level of the organization. Lean accounting is valuable because it focuses on creating short production cycles, and producing products that meet ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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