COST MANAGEMENT IP

Cost management IP

Cost management IP

Difference between Managerial and Cost Accounting

Management Accounting is a branch of accounting which aims to support all process of economic decision making in an organization. Therefore, the information provided to users must comply with certain requirements or qualitative characteristics and must be based on a series of concepts and techniques different from other branches of accounting. Often speak of Management Accounting from the perspective of Cost Accounting when the goals of both are different and therefore different in their fundamentals and theoretical concepts. Management

Cost Accounting as well as provide data to Financial Accounting is also the provided to Management Accounting, but the information is not information as such are not used which are obtained, but, as mentioned in the previous paragraph, it should be processed, i.e. there to give them relevance distinguishes between Cost Accounting and the Management by stating "although the relationships are not sufficiently clear, puts Cost Accounting its emphasis on the cost side, while management accounting with its emphasis on efficient allocation of resources " (Sapp et al, 1990).

In the field of management accounting seeks to know the internal and external context Conventional accounting ignores this approach. The objective is to provide management accounting information for the user take internal decisions related to your business. The basic goal of conventional accounting is the preparation of financial statements. There is a strong correlation between Cost Accounting and Managerial Accounting in

so that it cannot be conceived without that. Sometimes, one speaks of Cost Accounting and Managerial Accounting interchangeably (Shillinglaw, 1989).

Lean Production Philosophy

Lean production philosophy enables improved results by eliminating waste and all operations, which do not add value, added in the production process. Lean transformation of a business permit eliminate different causes of waste, are: defects, overproduction of goods, inventory excessive operations and tasks unnecessary movement of people, transport materials and wait. Lean thinking is based on doing "more" with "Less" providing more value by using fewer resources. For this, use a series of tools that will manage the organization more effectively, eliminating the operations without value and focusing on what the activity customer perceives as "value" of the product or service that demand. The analysis of the processes to allow optimization and improvement was carried out using the problem analysis techniques such as Six Sigma All these tools may apply not only in manufacturing environments but also the indirect support processes and service companies (Maskell, 2007).

Accounting principles in lean production and in typical production

Lean accounting is an accounting type that is designed for those companies who have implemented lean manufacturing techniques. Traditional cost accounting does not always accurately reflect the positive and cost saving measures that a lean system provides. However, since many of a company's decisions are based on the numbers that the accounting department yields, many of these benefits are overlooked with traditional accounting methods. Just a few of the cost organization methods that lean accounting includes are value streaming, changing inventory valuation techniques and modifying ...