Lean accounting can be considered an extension of lean manufacturing and production. Lean accounting is designed to optimise and improve financial management practices within an organization. Lean accounting is an extension of the philosophy of, which has the stated intention of minimizing waste while optimizing productivity. It helps businesses to eliminate unnecessary transactions and systems, reducing time, costs and waste.
Life Cycle Accounting
Life cycle accounting analyses the cost of making a product from start to finish. It will enable you to understand how much you will spend on the product during its useful life. Life cycle accounting comes in handy when you want to choose between two or more assets, understand the benefits of an asset and budget more accurately.
Cost Accounting V/s Financial Accounting
Unlike financial accounting, cost accounting is internally focused and firm-specific. It is commonly used by managers and employees of your organisation who are expected to make business decisions. Cost accounting can enhance operations and improve profitability. Financial accounting is intended to help shareholders, lenders, regulators and other parties who don’t have access to your internal information.
