Monthly Archives: October 2011

Lean Accounting & GAAP – Part 1

The FASB in Concepts Statement No. 2 identifies the qualitative characteristics of accounting information that distinguishes better (more useful) information from inferior (less useful) information for decision making purposes. The overriding criterion by which accounting choices can be judged is … Continue reading

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How Standard Costs Impact Company Behavior

There are many things wrong with standard costing, but perhaps the most dangerous is when standard costing begins to drive company behavior. Here is an example. I was working with a company recently on implementing lean accounting. The company manufactures … Continue reading

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Explaining a Value Stream Income Statement

Understanding the value stream income statement (VSPL) is a topic that sometimes arises as lean accounting is introduced. Because the VSPL “looks” different that the regular income statement, people assume there is something wrong with it. In fact, I was … Continue reading

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