Abstract

The financial information used for operational decision-making is inconsistent and current accounting practices encourage tampering. Recent monetary events created turmoil in the stock market and uncertainty in investments. Furthermore, accounting methods seem ineffective in discouraging unscrupulous behavior. Because the financial health of business is measured using Generally Accepted Accounting Principles (GAAP), what other choices exist for measuring fiscal performance? This paper provides an overview on a few potential alternatives to current accounting practice. One such practice is lean accounting. The other accounting systems are Activity Based Costing (ABC), Throughput Accounting (TA), and Resource Consumption Accounting (RCA). This paper will refer to the current financial accounting system as traditional.

Disciplines

Accounting | Business | Business Administration, Management, and Operations

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