Zen Accounting: How Japanese Management Accounting Practice Supports Lean Management
Department or Administrative Unit
Finance and Supply Chain Management
The historical roots of capacity accounting and lean management are examined in an effort to better understand how they evolved and in what competitive environment they would make sense. We then examine the nuances of capacity management and quantitatively demonstrate how capacity accounting undermines the very essence of lean management. Next we discuss Japanese cost accounting practice as it relates to lean management and finally draw conclusions with implications for management accounting practice within lean organizations in the United States.
Hutchinson, R. & Liao, K. (2009). Zen accounting: How Japanese accounting practice supports lean management. Management Accounting Quarterly 11(1), 27-35.
Management Accounting Quarterly
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