Tag Archives: LinkedIn

ABSORPTION COSTING IS THE ENEMY OF LEAN. CHRYSLER AND GM PROVED IT IN 2008.

“Using absorption costing to monitor efficiency can lead companies to make poor production decisions,” says Ranjani Krishnan, professor of accounting at Michigan State. “A company that does this could seem to be growing less efficient when demand decreases. If a … Continue reading

Posted in Lean Accounting, Lean Management System, Management Accounting, Performance Measures | Tagged , , , , , , , , | 10 Comments

Is Product Costing Helpful for Lean Companies

I was recently criticized by some august members of the cost & management accounting community. I had made a comment that I felt product costing was largely unhelpful for lean companies. It seems I hit a nerve with my comments … Continue reading

Posted in Financial Accounting, Lean Accounting, Lean Culture, Lean Management System, Management Accounting, Performance Measures, Product Costs, Transaction SImplification | Tagged , , , , , , , , , , | 2 Comments