Applying lean accounting and throughput accounting in an advanced manufacturing technology company
(English)Manuscript (preprint) (Other academic)
In recent years, lean accounting and throughput accounting have emerged as viable options for management accounting in manufacturing firms. Still, traditional management accounting systems are used by the majority of manufacturing firms, whether they are practicing lean or theory of constraints. This research is based on a manufacturing firm with considerable investments in advanced manufacturing technology, producing complex components and products. Today, the company is using a traditional accounting system with elements of activity-based costing. In this paper we analyze the applications of lean accounting and throughput accounting to the case company, as potential systems replacing the existing system. We find that neither of the two systems can fully replace the current accounting system, but both lean and throughput accounting offer interesting perspectives on management accounting of manufacturing systems. Since the company is currently incorporating lean initiatives, lean accounting can become relevant in the near future. Also, bottleneck management is becoming more important for the company, wherefore throughput accounting can become relevant in the near future.
IdentifiersURN: urn:nbn:se:liu:diva-87697OAI: oai:DiVA.org:liu-87697DiVA: diva2:599715
A earlier version of this paper was presented at the 11th Manufacturing Accounting Research Conference, 13-15 June, 2012, Helsinki, Finland2013-01-222013-01-222013-01-22