By the end of this module you’ll understand some of the differences between traditional and lean accounting and why lean accounting is an important part of your organization’s lean journey.

By the end of this module you’ll be more familiar with the basic difference between financial and managerial accounting.

By the end of this module you’ll understand the motivation for value stream costing including the steps to design and use a value stream income statement.

Continuing our discussion of Value Stream Costing.

By the end of this module you’ll understand the problems of using a traditional, standard cost approach to inventory valuation including the impact overproduction can have when traditional cost accounting is performed.

In this module we’d like to share some good news… namely that there’s another, lean friendly, way to perform inventory valuation.

By the end of this module you’ll know why capacity measures and box scores are important and how to calculate capacity and use capacity measures in decision making.

By the end of this module you’ll understand the advantages of using throughput to calculate conversion costs instead of using standard costs; we’ll explain how features and characteristic costing can help with pricing decisions, and we’ll show a better way to evaluate product mix, special orders, and make vs. buy decisions.

By the end of this module you’ll understand the difference between cost plus and target costing. We’ll also discuss how to evaluate customer value when designing new products or improving existing products.

By the end of this module you’ll know why measures should change once lean accounting is adopted and the resistance organizations sometimes face when they attempt to make these changes.

By the end of this module you’ll understand a simple way to calculate the costs of closing the books… we’ll also provide some tips to help reduce the time-to-close, and, in the process, we’ll discuss the important difference between being accurate and being precise while preparing the books.

By the end of this module you’ll know which lean accounting books, networks, and conferences we recommend.