Abstract :
This paper discusses how figures gathered with traditional accounting (TA) practices could misrepresent a manufacturing company´s true standing. TA treats spending on training, marketing, research and development (R&D) and building customer base as a current expense rather than an investment. It doesn´t allow for the increasing value of R&D, brands and other intellectual property. Fortunately, accountants are now beginning to realize that implementing lean and cellular manufacturing and reducing inventory levels can deliver benefits. More emphasis is now placed on delivery performance, customer service and quality levels as much as output per head.
