Purchase Solution

Lean accounting and GAAP principles

Not what you're looking for?

Ask Custom Question

Define lean accounting and how it could be recognized by GAAP. Compare it to traditional accounting and describe situations where lean accounting is the preferred method.

Purchase this Solution
Solution Summary

This solution describes lean accounting and compares and contrasts it to traditional accounting methods, discussing cases where lean accounting is the more beneficial method to use.

Solution Preview

In general terms, lean accounting is a business tool where the main focus is to reduce waste from the production process. It transforms the function used by traditional accounting for allocating business costs to one that is able to measure results for tracking efficiencies of overall operations. It is able to accomplish this by reviewing all aspects of the company's operation and limiting the inefficient production processes that do not add company value.

The two main components of lean accounting are to measure and motivate. Measuring refers to reviewing specific processes to determine how they move toward the overall goal of the company. ...

Purchase this Solution
Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

View More Free Quizzes
Related BrainMass Solutions

  • GAAP and Financial Reports

    The disadvantages of GAAP recognizing accounting for lean is that GAAP is a common set of accounting principles, standards, and procedures. GAAP is not a person or a body that can recognize anything.

  • Briefly: History of Lean Accounting and History of US GAAP

    563058 History of Lean Accounting and GAAP What is the history and definition of lean accounting? What is the history of GAAP?

  • Accounting for lean

    However, accounting for lean is not suitable for external reporting and the firm should stick to GAAP. Accounting for lean is time consuming and often has accountants struggling.

  • Lean Accounting: Reasons to adopt lean vs. GAAP

    What would the advantages and disadvantages of accounting for lean to be recognized by GAAP What would the advantages of having separate internal and external financial reporting for Accounting for Lean and GAAP.

  • Managerial Accounting Concepts and the Lean Business Model

    Accounting Concepts and the Lean Business Model questions.

  • GAAP

    What are Generally Accepted Accounting Principles (GAAP)? These are rules and procedures that define accepted accounting practice. This is a mix of detailed procedures and principles.

  • The GAAP and Accounting Principles

    421211 GAAP and accounting principles How does GAAP vary from Accounting principles?

  • The Lean System

    Cost accounting evolved to measure profitability across a range of products and to satisfy generally accepted accounting principles (GAAP) and the Internal Revenue Service but in order to make lean recognizable, their management reporting needs to move

  • Accounting Exercises

    174140 Why is accounting often referred to as the "language of business"? 5- Why is accounting often referred to as the "language of business"? 7- What are generally accepted accounting principles (GAAP)? Who currently develops and issues GAAP?

View More Related Solutions