Eliminating Standard Costing: A Step-by-Step Methodology

Presented By:

Nick Katko

Session Abstract:

If you are in the accounting department in a lean manufacturing company, and your company uses a standard costing system, it is inevitable that the accounting department will be faced with confronting how its standard costing system is being used.

Lean manufacturing accounting departments must be the leaders in proactively evaluating how the standard costing system is being used as your lean journey begins and come up with a plan.

Coming up with a plan is not difficult, because the issues happen to be very common across lean manufacturing companies that use standard costing systems. In this session you will learn about the issues and a general methodology in transforming and finally eliminating standard costing from your business.

Learning Objectives:

  • Why Lean Accounting is in compliance with GAAP/IFRS
  • Evaluating the current state of your standard costing system
  • Steps to simplify standard costing systems
  • Understanding the impact of ERP settings & reporting on lean accounting
  • Defining “eliminate standard costing” for your company

Simplified inventory valuation

About the Facilitator:

Nick Katko is one of the early pioneers of Lean Accounting. In the 1990’s as CFO of Bullard Nick implemented Lean Accounting and successfully “turned off” standard costing. From 2002 – 2015 Nick worked as a Senior Consultant with BMA Inc. Nick is currently CFO of Tenmast Software in Lexington KY.