Integration of Lean Accounting and Cost Management Mechanisms to Achieve Competitive Advantage

The primary objective of industrial institutions and businesses, in general, is to maximize profits by strengthening their position in the industry's competitive landscape and expanding their market share relative to that of other competing businesses. The purpose of this study is to demonstrate both the impact of applying lean accounting mechanisms in improving the competitive position of industrial companies and increasing the market share of these companies, as well as the role that lean accounting mechanisms play in rationalizing costs in industrial companies. This information will be gleaned from us, the authors of this study. A case study based on real data from the General Company for Rubber and Tire Industries (2016) was used to accomplish the research goals. The research findings suggested that using lean accounting processes might help the firm cut its production costs by drawing attention to unused energy and the opportunities it presents. In addition, the study demonstrated that implementing lean accounting tools, such as the value stream and target cost, has an effect on the pricing strategy of the company. This is accomplished by gaining a competitive advantage and using unused energy, leading to an optimal cost reduction. As a result, the research suggests that industrial businesses should use lean accounting techniques to effectively control their expenses and develop appropriate pricing strategies for their products.