Question

What do a companys finacial statements have to do with the lean manufacturing process?

Answer 1

ANSWER: Lean manufacturing process vigorously attacks waste in all its forms, thus decreases the cost of goods sold and contribute to profit. Lean methods of accounting make essential financial information available throughout a company. Lean manufacturing encompasses several concepts and tools that include organizing costs by value stream, changing techniques of inventory valuation, and modification of the financial reports to include nonfinancial information. It aimed at simplification of a business to the essential elements, with and fulfll the needs of the customer in a more effective, and therefore profitable, manner. The concepts of Lean accounting are designed to better reflect the company's financial performance that has implemented lean manufacturing processes.