Lean accounting
Lean accounting adapts internal costing, reporting and controls to support lean operations and understandable value-stream performance. It can focus on flow, capacity and actual resource use rather than rewarding large batches through isolated absorption measures. The exact design depends on the organisation and does not remove external reporting obligations. Distinguish freed capacity from cash savings and assess customer and whole-system outcomes alongside cost.
Worked example
A report shows lead time, first-time-right delivery and value-stream resource spending rather than treating a rise in inventory-driven absorption profit as improvement.
Common mistake
A capacity gain is not an immediate expense reduction if the same resources remain paid and no useful alternative output is created.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |