“The foundation for Lean Accounting has a history of demonstrable benefit and is likely to have a significant impact on the U.S. business landscape (Anton van, d. M., & Thomson, J. (2007).” Lean Accounting basically transforms the traditional cost accounting function of allocating business cost to help produce goods or other service by creating measurable results for tracking the efficiency of all operations. In the end Lean Accounting does this in order to limit non effective production that does not add value to the company.
In this article it discusses possible problems with the Lean Accounting movement. This article is not against Lean Accounting, but they do want managers’ to proceed with caution because it is not the right step to take when dealing with their companies. There are three Lean Accounting assertions that justify closer scrutiny: accounting is the problem, all conversion costs are fixed, and claims for support of external reporting.