1. Go to www.journalofaccountancy.com and search for articles on lean accounting
ID: 2554936 • Letter: 1
Question
1. Go to www.journalofaccountancy.com and search for articles on lean accounting. Using articles found in this search, answer the following questions: a. Why do standard-costing practices no longer make sense for a lean organization? If standard costing is replaced with a lean accounting approach, what problems might afirm then face? 2. Go to www.leanadvisors.com and identify companies that have implemented learn manufacturing. Answer the following questions: What kind of benefits did manufacturing companies experience from a. implementing lean manufacturing? b. Can lean approaches be applied to service organizations? If yes, describe a specific implementation for a service organization and the resulting benefits.Explanation / Answer
1.
a. As standard costing was developed to suit the needs of mass manufacturing. The mass manufacturing environment, which is characterized by high fixed-investment costs in the plant and machinery, involves production of large volumes of uniform output. In a lean environment, operational and process controls replace managerial and financial controls at aggregated levels. Also, visual operational controls replace periodic financial controls at aggregated levels. The objective of lean is to prevent deviations from occurring in the first place and not correcting deviations that have already occurred.
b. The firm will have no account or remedial actions taken for the wastage or deviations already occured. The firm will also be spending more on the preventive measures. Further, the deviations segregated by functions will not be available.
2.
a. Cost benefits, bottleneck removal, Reduction in setup times, Materials inventory was reduced.
b.
New Brunswick Community College
Lean was applied to the college, Theory was reinforced with 4 rounds of Lean simulation including enterprise, process alignment, simulating Lean tools, and finally to a completely Lean, single piece flow consisting of 2 production lines and a mixed model line. The student's behaviour changed from week to week. Initial curiosity eventually gave way to well, let's call it rational exuberance. They realised that they had experienced something new that would add significant value not only to themselves but also to the companies where they would soon be employed.
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