Strategic Cost Management and Lean Thinking : A Framework for Management Accounting

Starting from the weaknesses of traditional formal cost accounting systems, this article describes a possible integrative model based on synergies between the Strategic Cost Management approach and some Lean Management tools. This approach has been designed therefore to help enhance the effectiveness of existing costing systems and hence help to provide a route path for firms wanting to improve their strategic and in an operational decision making along lean thinking lines. In particular, this article reports a step-by-step description of the model, essentially based on a process-based costing approach. Evidence from a case study is also reported, in order to better clarify the potential synergy between cost accounting and lean management frameworks