Lean Accounting in Lean Organization (Transformation from Cost-based Approach to Value-based Approach

Document Type : Review Paper

Author

Assistant Professor of Accounting, Islamic Azad University, Hashtrood Branch, , Hashtrood, Iran

Abstract

Reporting Responsibility in the lean environment is done by an information system called lean accounting that rooted in lean thought, by eliminating waste and creating value in the organization. The aim of this paper is to review the importance of lean accounting and characteristics of lean organization, in comparison with types of costing systems included the traditional costing, the value stream costing, the activity-based costing (ABC) and the time-driven activity-based costing (TDABC). The results show that Lean accounting as a tool in order to cover the shortcomings of traditional accounting system and costing, can be viewed as a transformation from cost-based approach to value-based approach for management accounting. A company that uses the best practices in all functional areas and experienced sustainability in four different aspects of lean development, lean supply and purchasing, lean production and lean delivery, is considered a lean organization and will experience greater sustainability and better performance than its counterparts in the industry.

Keywords

References

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History

  • Receive Date: 02 January 2019
  • Revise Date: 07 February 2019
  • Accept Date: 10 April 2019

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