Lean Accounting Practices And Performance Of Manufacturing Firms In Rivers State, Nigeria
JONAH Ngbomowa Moses PhD
Department of Accounting, Faculty of Administration and Management, Rivers State University, Nkpolu Port Harcourt Rivers State, Nigeria.
JACK Obiazi Tubotamuno-Ojas Ph.D
Department of Accounting, Faculty of Administration and Management, Rivers State University, Nigeria
Keywords: Lean Accounting, Value Stream Costing, Kaizen Costing, Profitability, Cost Efficiency, Manufacturing Firms, Rivers State, Nigeria
Abstract
This study investigated the effect of lean accounting practices on the performance of manufacturing firms in Rivers State, Nigeria, focusing on two dimensions of lean accounting: Value Stream Costing (VSC) and Kaizen Costing (KC). Firm performance was measured using two financial indicators: profitability and cost efficiency. A descriptive survey research design was adopted, and data were collected from 110 finance and operations managers of selected manufacturing firms using structured questionnaires. Descriptive statistics, multiple regression analysis, and ANOVA were used to analyse the data. The findings revealed that Value Stream Costing significantly improves both profitability (β = 0.42, p < 0.001) and cost efficiency (β = 0.38, p = 0.001), while Kaizen Costing also significantly enhances profitability (β = 0.35, p = 0.001) and cost efficiency (β = 0.41, p < 0.001). The regression models explained 52% of the variance in profitability and 49% of the variance in cost efficiency, and both models were statistically significant (p < 0.001). These results indicate that lean accounting practices positively influence the financial and operational performance of manufacturing firms. The study concludes that adoption of lean accounting practices is critical for enhancing profitability and operational efficiency. It recommends that manufacturing firms institutionalize lean accounting, align accounting systems with lean production processes, and cultivate a culture of continuous improvement through Kaizen initiatives.