Lean Accounting

Article Report
The Lowdown on Lean Accounting


The article written for the ledger of Accountancy in July of 2004 has many good maculations when it dialog closely Lean Accounting. There were two points that really stood out passim the article, they both agree with the concept of Lean Accounting.
The first point that stood out in the article was What Lean Means. The author talks about how endure manufacturing principles differ from mass production in several ways. When it comes to lean we emphasize the reducing waste concept, that is angioten ugliness converting enzyme of the key points that the author points out in the article the biggest sin is to overproduce in other words, if we overproduce we have to a greater extent product then we pile sell or little customers to purchase the product. He also mentions that work groups or cells can be combined together to produce similar products. The chapter on lean accounting talks about manufacturing cells and value streams. That means that you can compact many steps that be knotted during the manufacturing process into just one simple step. That allow assist to eliminate s screenpage time and also make the conflate of manufacturing a product smoother.
The other point the author make was on implementing a lean accounting to a company.



It utter that applying a new concept would involve the commitment of the top management in the company. Top management does realize that it will take step by step before they be able to implement lean accounting completely exactly in the end it will be worth the struggle. In our book in that respect was a section that talked about how implementing lean accounting would drop profits within the company temporarily but once implemented it would save money and there would be no waste. Under the lean approach inventories are kept at a minimum level. Since we are care our inventories at a minimum level it will come upon from the balance sheet to the income statement, which will reduce the net income. precaution at first will need a withdraw item indicating why...If you want to get a full essay, rear it on our website: Orderessay



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