Are We Leaning Away from Standard Costing?
In this session Andrew Bargerstock presents an overview of the research presenter in Management Accounting Quarterly about an apparent dichotomy between Lean Accounting theory and practice. Lean theory suggests that mature lean companies will discard standard costing and variance analysis (SCVA) after work cell metrics are fully implemented for production control. Yet anecdotal evidence suggests that few mature lean companies actually abandon SCVA.
A research study funded in part by IMA provided empirical evidence that supports reluctance to move away from SCVA. In this session, Andrew Bargerstock will provide field evidence and will solicit comments from the audience about their experiences with these issues.
In this session you will learn…
- the criteria for meeting the test as a mature lean manufacturer
- about how lean accounting theory and lean accounting practice differ on the use of standard costing
- discover key reasons to explain why mature lean manufacturers are retaining standard costing
- you will learn why standard costing is viewed as a form of waste in lean accounting
About the Facilitator:
Andrew Bargerstack MBS, CPA, PhD is president of Vanguard Resource Group Inc., a notional consulting firm in lean management, lean accounting and innovative human resource practices. In 2009 he was recognized by the Lean Accounting Summit with the Excellence in Lean Accounting Professor award based upon his work in MBA school teaching and presenting to IMA conferences. Two of his PHD students were awarded Lean Accounting Summit students of the year recognitions. Andrew is a certified lean facilitator and has conducted training and kaizen events. He publishes research and authentic case studies in peer reviewed journals.