Author(s)

Xiaobing Pei, Fangjian Shang

Corresponding Author

Fangjian Shang

ABSTRACT

If an enterprise wants to stand out from the fierce competition environment, it is necessary to create greater value for customers at a lower cost, so that products have greater value added. To improve the production and obtain higher value-added, the company must first identify the value added so that it can be improved in a targeted manner. Based on the theory of lean accounting, this paper analyzes the various production links in the value stream from the cost. And the cost accounting is accurate to the level of production links in the value stream, making the cost accounting more specific. Then, the output value of each production link is analyzed, and the distribution method is adopted. By using the output value of each production link minus the cost of the link, the value added of the production link can be quantified. Enterprises can more rationally allocate resources according to quantitative value-added information, make the production improvement of the enterprise more targeted, maintain the competitiveness link, and improve the weak links, thereby improving the value added of the enterprise and helping the enterprise to improve its competitiveness.

KEYWORDS

Lean accounting, value stream, value distribution, value added