The Effect of Cost Accounting System on the Relationship between Lean Production System and Motivating Employees' Performance toward Rationalization: a Field Study

The purpose of this study is to examine the influence of cost accounting system applied in an organization on the relationship between lean production system and motivating employees' performance toward rationalizing the use of resources. To achieve this objective, the concepts of lean production system have been explained, and lean accounting tools, especially value stream costing, have been demonstrated. Then, the study explained in details the effect of value stream costing system on motivating employees' performance toward rationalizing the use of resources against traditional costing systems as a base to formulate research hypotheses. The results of the study concluded that the companies in the field study applied in advanced grades the principles of lean production environment, but this did not positively affect the performance of workers toward rationalizing the use of resources because of adoption traditional cost systems by these companies. Based on these findings the study recommended that the Egyptian companies should transmit to value stream costing system to provide cost information motivating employees' performance toward rationalizing the use of resources and prevent faulty inference about lean initiatives because of adoption traditional costing systems.