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Revolutionizing Accounting for Decision Making : Combining the Disciplines of Lean with Activity Based Costing, EPUB eBook

Revolutionizing Accounting for Decision Making : Combining the Disciplines of Lean with Activity Based Costing EPUB

Edited by Matthew X. Ryan CPA CFE MBA

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This book combines multiple disciplines of lean and activity-based costing in a practical, easy-to-use way so that leaders can make informed decisions. Most of my life has been dealing with organizations that are in financial distress.

Many financial decisions were based upon information that was technically accurate but simultaneously misleading or deceptive. Unfortunately, organizations are making decisions about selling divisions, shutting down product lines, moving facilities, and disrupting peoples lives without a clear understanding of the accuracy and the importance of those decisions. Individuals and their families have seen lives shattered because of suspect information. As a certified public accountant (CPA), we pride ourselves that our responsibility is to the public.

We clearly state in our code of ethics that we have a responsibility to the collective well-being of the people that we serve.

That is a daunting responsibility. We also have a responsibility to be objective. Objectivity requires us to be impartial, intellectually honest, and free of conflicts of interest and material bias. The principles of lean, activity-based costing, marketing, strategic planning, and traditional financial reporting are combined using existing systems so that decision-makers can be armed with accurate financial information. Activity-based costing is a process-oriented, systematic approach to attribute cost to the activities for which an organization is engaged to accomplish it strategic mission.

An understanding of the organizations mission is essential for an accurate understanding of the nature of costs. The entire concept of activity based costing and going lean is designed to support the governance responsibilities of management.

Our revolutionary approach to accounting for decision making will result in a rethinking of accounting and information system to enable leaders to make more informed decisions.

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