Improving cost information under of lean accounting approach

Abstract

The current study aims to investigate the relevance of cost information with modern requirements for industrialization and its reflection on the effectiveness of lean manufacturing. In addition to identifying the most important criticisms directed to the traditional accounting system and thus the development and improvement of cost information and its relevance for the modern business environment. The research is based on a major hypothesis that the use of lean accounting approach can lead to an improvement of cost information through the availability of important information for management to keep pace with the modern manufacturing environment. A questionnaire consisting of 14 questions has been designed and directed to the study community consisting of academic specialists and workers in the field of accounting and management in the Iraqi economic entities to clarify the application side of the research. The research has reached a set of conclusions, perhaps the most prominent of which is that the application of lean accounting approach contributes to calculating the costs of products from the perspective of flow or value path for each product. The research recommended that the economic units should work to reduce waste and losing, and study and analyze its causes and provide solutions and remedies that avoid the economic unit the occurring of extravagance and waste.