Fungibility and capacity utilization concepts of RCA (Resource Consumption Accounting) with their breakdown into time components, cost and value, mirror and quantify the concepts of subordination, exploitation and elevation in Constraint Theory, which in turn are integral to a good implementation of LEAN.
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Accounting cost choices from those data values can be used by accountants for input into financial reporting, tax optimization, and ABC (Activity Based Costing) calculations.
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For managerial accounting, combinations of allocation (proportional cost) and capacity use choices can be used for assumptions in forward simulation comparisons when deciding on capital investment and workflow decisions by operators and those who can create realistic simulations of probable scenarios.
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A solid link is created between capacity utilization for operations, accounting and financial decisions. Better and more transparent tradeoffs between wealth generation, safety, standard of care and operator contentment are possible.
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Complicated agency conflicts can be valued along multiple parameters, and open to more negotiation avenues.
ORTimes 