Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Advanced cost accounting systems within the lean thinking strategy: A theoretical analysis

Author(s): Ali Hazim Alyamoor

The primary aim of the research is to highlight the advanced cost accounting systems that are more suitable for the lean thinking strategy. These systems are Throughput Accounting (TA) and Value Stream Costing (VSC). To achieve the research aims, I conducted a theoretical analysis of the literature covering both systems and discussed the superiority of these systems over others under the lean thinking strategy. The research found that the implementation of such systems requires a radical change in organizations to be able to support the lean thinking strategy and adding value for customers. Also, these systems should be implemented as a complement to, and not as a substitute for the traditional costing system. The research contributes to the advanced costing systems literature as it provides a holistic and comparative analysis of both TA and VSC, which would be useful to academics and practitioners.

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