Accounting has protracted been a world unto itself with abstruse information and a language all its own. Finance is widespread with special words. What accurately does revenue mean? What are variances? What is inclusion?
These all appear on financial statements, but the average business person almost certainly doesn’t really understand them.
Lack of a common language in which the financial operations and the rest of processes can communicate has created the accounting function as an inaccessible silo in many organizations. Somehow, this isolation has been accepted in associations for many years, but with lean manufacturing and lean business processes quickly becoming the world’s standard, traditional financial reporting is not only inaccessible but a barrier to a focus on customer demand.
In a lean company, standard cost accounting techniques are likely to inadvertently damage lean efforts. This happens because usually accepted accounting principles (GAAP) require some of an organization’s costs for people, buildings and other things like excess materials which might not be adding value in our companies to be treated as assets.
Under GAAP, some of these costs are put on the balance sheet as record, and aren’t considered actual
costs until that inventory ships. Why is this problem for lean companies?One of the first things that occurs as companies institute lean processes is that inventory drops, and as inventory drops GAAP needs that we add these deferred costs to our income statement, which in turn makes our financial results look bad. In the meantime, inventory reduction generates cash, which really is king, but the benefit of cash cohort gets lost because companies are so used to measuring presentation based on profit-and-income statements rather than genuine cash generation.
Cost accounting task is not easy accounting students generally need assistance in accounting problem, online experts are free to give help like cost accounting assignment help and problems solving help and ,they also helps to crack some competitive exams ,so this kind of assignment help from accounting experts is beneficial for accounting students.
Resource article: http://www.expertsbuzz.com/
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