Accounting for Continuous Improvement

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Accounting is an integral part of the planning and control system of any manufacturing operation. Yet in many companies the accounting function has failed to adapt to a new competitive environment that requires continuous improvement in the design, manufacturing, and marketing of a product. As a result, corporate strategies that depend on success in manufacturing are endangered by obsolete and restrictive accounting systems. This article describes how one division brought its accounting systems into line with the rest of the operation.   

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