I am going to discuss the difference between managerial accounting and cutting cost. I will also provide some of where lean production came from and how it started

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Andrea Blake

IP 2

September 3, 2012

American Intercontinental University

Cutting Cost

Abstract

In this paper I am going to discuss the difference between managerial accounting and cutting cost. I will also provide some of where lean production came from and how it started or originated from. I am going to also briefly touch on how Dr. White can prepare to cut budgets as well as the company and the other employees that surround her.

Cutting cost

        The difference between cost accounting and managerial accounting is that when talking about cost accounting it is mainly used within the company to manage the companies’ costs or even drop costs. Cost accounting is used internally and is primarily an internal mechanism, it is not tied with managerial accounting standards such as GAAP, and the steps to try and figure out where reductions in budgets and costs will be realistic.

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        When talking about lean production it actually came from the Japanese and originated in Toyota Company. The goal was to try and get rid of any area or sourcing, material or production related costs unless it was used and tied up directly to adding value to the production line. If this philosophy is used in the right manner than there is no waste, and the quality of products go up and in most cases the costs will reduce. One example that I can think have for learn production are the “kanban” or the pull production. What pull production is it’s ...

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