30th Annual Student Research Conference
Lean Accounting Environments:
Problems with Current Performance Measures
Andrew S. Riek
Dr. Kathy Otero, Faculty Mentor
The implementation of lean accounting principles in manufacturing companies is becoming more popular as a costing method. As these principles develop, common performance measures, such as variances, produce results that give a false image of the company’s stability and success. Articles and books written by lean accounting experts were analyzed to discover the core problems with these measurements. After a careful analysis, alternatives to the traditional performance measures, as well as modifications to the traditional variances, were identified. Modifications to the external reporting procedures were also recognized as ways to improve the analysis of this new method. These changes will give shareholders, as well as the public a more accurate glimpse of the success of lean implementation.
Keywords: lean environment, conventional accounting measures, accounting for lean, profit and loss statements
Topic(s):Accounting
Presentation Type: Oral Paper
Session: 106-4
Location: VH 1010
Time: 8:45