Back to Lean Accounting
Industry Header

Are ABC and RCA Accounting Systems Compatible with Lean Management?

Review by Brian Maskell

The article being reviewed was originally published in the Fall 2005 issue of "Management Accounting Quarterly."
a publication of the Institute of the Management Accountants (www.imanet.org) .

Click here to read the entire article.

Activity-Based Cost (ABC) systems have been around for many years but few lean organizations use them. In recent years new methods such as Resource Consumption Accounting (RCA) and grazplancostenrechnung (GPK) have been introduced -- often supported by ERP systems suppliers -- to provide more thorough and detailed cost accounting and decision support. These systems resolve some of the shortcomings of ABC. But are they appropriate for lean organizations?

In this thorough article Dr. Lawrence Grasso explores ABC, RCA and GPK in detail and shows why these methods are for the most part unnecessary for lean companies, as well as being time-consuming to maintain and complicated.

BMA Inc. © 2008 • Privacy Policy