The Difference Between Traditional and Lean Accounting

Lean account­ing is a way of think­ing that focus­es on the study of costs around dif­fer­ent val­ue flows, unlike tra­di­tion­al account­ing, in which each man­u­fac­tur­ing cost is vari­able. Gem­ba Acad­e­my Co-Founder Kevin Mey­er and Exec­u­tive Chair of Lean Enter­prise Insti­tutes Jean Cun­ning­ham review both the dif­fer­ences and the ben­e­fits that lean account­ing offers.

• 0:08 — Tra­di­tion­al vs. lean accounting
• 1:29 — Sep­a­rat­ing vari­able and fixed costs
• 2:31 — Iden­ti­fy­ing the deploy­ment of fixed costs
• 3:28 — Sep­a­rat­ing inven­to­ry valuation