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MUM faculty continue leading research in lean accounting with new paper

Maharishi University of Management - The Review    Translate This Article
21 June 2016

The Excellence In Action page of Global Good News is featuring a new article by Maharishi University of Management* business faculty members Dr. Andrew Bargerstock and Dr. Ye Shi, yet again showing MUM's leadership in the field of lean accounting.

The article, entitled ''Leaning Away from Standard Costing? Reconciling Lean Accounting Theory and Practice,'' examines an inconsistency in lean accounting theory and practice related to use of standard costing in U.S. manufacturing enterprises that utilize Toyota-style process-improvement techniques.

It appears in the June 2016 issue of Strategic Finance, the monthly peer-reviewed journal of the Institute for Management Accountants (IMA).

Enjoy the article on the Excellence in Action page.

According to Dr. Bargerstock, lean manufacturing is increasingly being adopted in the U.S., but research shows that when those companies don't also adopt lean accounting, it results in waste and inefficiency.

''This is because variance analysis is replaced by work cell metrics that are considered to be superior methods for production control,' Dr. Bargerstock says.
Despite the advantage of adopting lean accounting, field reports and a 2013 research study conducted by Manjunath Rao at MUM indicate that the majority of mature lean manufacturers continue to use standard costing and variance analysis.

The article by Dr. Bargerstock and Dr. Ye sheds new light on possible reasons for why companies aren't adopting lean accounting, including lack of knowledge about lean accounting, deeply entrenched institutional histories of standard costing, and inertia sustained by legacy enterprise resource planning systems.

Copyright © 2016 Maharishi University of Management

*Maharishi University of Management (MUM) is a private, accredited university featuring Consciousness-Based Education, designed to develop the student's total potential. The curriculum offers bachelor's, master's, and doctoral degrees in the arts, sciences, humanities, and business, but also integrates self-development programs. All students, faculty, and staff practice the Transcendental Meditation® technique, which develops integrated brain functioning, promotes wellness, and enhances learning ability and academic performance. For more information, call the Admissions Office at 800-369-6480 [toll-free in US; outside US call: +1 641-472-1110] or visit

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