Standard Cost Accounting obscures the true Operational Picture

"[W]hen financial cost-focused accounting was adopted in the U.S. about 100 years ago, its promoters warned that it would not be a good tool for operational management. A growing body of experience at companies implementing lean accounting is showing that they were right. Too many vital decisions are based on standard cost accounting, which obscures the true operational picture."

Source:

http://www.forbes.com/2009/07/28/accounting-management-enterprise-technology-cio-network-accounting.html

Dan Woods is chief technology officer and editor of Evolved Technologist, a research firm focused on the needs of CTOs and chief information officers. He also consults for many of the companies he writes about. For more information, go to evolvedtechnologist.com.