Lean Accounting and Activity-Based Costing (ABC) – A Choice or Blend?

0.1 CEUs


This presentation addresses confusion that management accountants have. There are debates in the management accounting community about what is the most appropriate costing method.

There are rival camps. For example, some lean accounting advocates who create “value stream maps” criticize activity-based costing (ABC). There are passionate advocates of ABC because it provides much greater cost accuracy and visibility to cost drivers compared to the flawed and misleading costs from traditional and grotesquely cost distorting cost allocation methods. Who is correct?

What is needed is to ask a different question that resolves this dilemma. That question is about how a company might have two or more co-existing management accounting methods. There can be different costs for different purposes used by different types of managers and employee teams.

What you will learn:

Upon completion of this 1 hour course, you will be able to:

  • Define activity-based costing (ABC) and lean accounting
  • Design solutions that overcome barriers to implementing ABC
  • Describe how organizations can apply both lean accounting and ABC
  • Design solutions that create supplier and logistics integration

Registration Fee

Member: $39 Non-Member: $79


Cokins   Gary Cokins 
Analytics-Based Performance Management