Lean Accounting

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Lean Accounting supports the principle of eliminating waste and streamlining the business processes to create maximum value. So lean management accounting metrics is all about breaking away from traditional cost accounting cost objects like product or job and is driven by a new cost object 'Value Stream'. As part of lean accounting exercise, we define the scope of value stream cost object and map the business process activities to this cost object. Lean accounting helps organisations going through lean transformation to develop their management accounting systems to support the lean philosophy. Traditional accounting systems (particularly standard costing) result in decisions which are anti-lean.