The tracking of inventories can be minimized when an
organization transitions to apull system with short production cycles and low inventories. Costs can be controlled
through VSC, creating an efficient, simple, strategicallyaligned reporting system. To maintain stability, we expect
that in the early stages of a lean implementation, firms will
run dual costing systems consisting of VSC and inventory
tracking. However, firms in the later stages of a lean implementation and further along the ‘‘lean accounting maturity
path’’ will place less reliance on inventory tracking. Thus,
we formally hypothesize
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