Tag Archives: Standard Cost

Arrgghh. It’s NOT About Changing Your Accounting System

I work with companies that are serious about being lean organizations. Most of them use Lean Accounting. It is not about changing your accounting system. It’s about embracing lean principles and methods. Lean changes the way they look at management accounting. Here’s … Continue reading

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A Better Way to Understand Product Profitability

Many companies calculate product profitability by subtracting a Standard Cost from the Price and calling it a Margin. But this calculated margin does NOT tell you how much money you are making. It tells you almost nothing about the profit … Continue reading

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In Defense of Accountants

I get tired defending accountants over and over again for a crime they have not committed. Standard costing, as we know, does not work for Lean companies.  What do we do?  We “round up the usual suspects” [i] This often … Continue reading

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