WHAT IS LEAN ACCOUNTING?

Abstract

The term ‘Lean’ became common during the 1980s and 1990s, due to the book ‘Lean Thinking’. In September 2005, at the Lean Accounting Summit in Detroit, co-sponsored by AME, the definition of Lean Accounting and the description of Principles, Practices and Tools of Lean Accounting were documented. In fact, lean manufacturing, is a complete business system including an advanced manufacturing techniques that fully combines the just-in-time (JIT), total quality management (TQM), total preventive maintenance (TPM), Value Engineering (VE), and Target Costing. Lean Accounting seeks to reduce the steps in the implementation process, to eliminate standard prices to actual prices, and to stop the expense allocations. Also, the lean control operation focuses on performance measurement system and emphasizes the social and behavioral controls.