Final answer:
When a company minimizes unnecessary processes and measures costs at a micro-level, it is utilizing a lean accounting system. This approach is integral for firms looking to make informed decisions about their cost structures and production efficiencies, especially relevant in lean manufacturing environments and when leveraging economies of scale.
Step-by-step explanation:
When a company provides cost measures at the work cell or process level and minimizes wasteful or unnecessary transaction processes, a lean accounting system is used. Lean accounting is an approach that supports a company's lean enterprise efforts and provides more relevant information for decision-making in a lean manufacturing environment.
In terms of cost structures, it's important to emphasize that fixed costs, average costs, average variable costs, variable costs, and marginal costs are all useful measures that can give a firm insight into profit maximization and determine the optimal scale of production. This becomes especially beneficial when dealing with economies of scale, where the increased quantity of output can lower the cost per unit, allowing larger factories to produce goods at a lower average cost compared to smaller ones.