...INTRODUCTION Robert Samuel Kaplan was born in 1940. He is an American accounting academic, and a Professor of Accounting at Carnegie-Mellon University and Arthur Lowes Dickinson Professor of Accounting at the Harvard Business School. He had wrote a journal entitled “The Evolution of Management Accounting” in 1983. The purpose of this article is to summarize the development of management accounting, including the new demands for management information, and to develop a research strategy to meet these demands i) THE EVOLUTION OF MANAGEMENT ACCOUNTING (From Robert S. Kaplan point of view) In his paperwork, he divided it into five sections. • Section 1 - Development of cost accounting practices from the early textile mills and railroads (circa 1850) through the formation of the great industrial enterprises in the U.S. and the emergence of the scientific management approach. • Section 2 - Management control innovations of the DuPont Corporation and the General Motors Corporation after its reorganization by Pierre du Pont and Alfred Sloan in 1920. • Section 3 - Development in cost accounting and managerial control form 1925 to the present. • Section 4 - Challenges from the contemporary environment that may not be met by the accounting practices developed more than 60 years ago for a substantially different competitive situation. • Section 5 - Agenda for field based research to document or develop innovative management control practices appropriate for the changing...
Words: 2288 - Pages: 10
...Punjab College of Commerce Financial Accounting ACCT3013 Prof. Hafiz Imtiaz Reg. No. 2035 – Minahil Raza Reg. No. 2030 - Ahmad Waqas Reg. No. 2001 - Syed Faizan Jaffri December 15, 2013 Difference between Accounting & Finance Accounting is an art of recording, classifying and summarizing the transaction in a significant manner, whereas finance is the management of money and other valuables, which can easily be converted into cash. Functions of Finance Department of an Organization * Preparation of Budget Plans It is duty of finance department of company to make the budget before actual providing money to any department. It helps to fulfill each department with minimum cost. * Financial Management In this function finance department gets money from capital market at very low risk and cost. Finance department analyzes all the resources of funds and create a good financial structure of company. In this structure, finance department analyze whether it will decrease the overall cost of capital on Average basis or not. * Management of Investments of Company After making financial structure, finance department invests debenture holders and shareholders money in best projects for getting highest return on investment. For this finance department takes investment decision. These investment decisions can be taken with the help of capital budgeting and investment analysis techniques. * Management of Financial Risks Financial department takes...
Words: 1304 - Pages: 6
...negotiation and post acquisition events of the acquisition of 100 percent of the equity of “Target Company” limited by “Investor” Limited. While the names of acquiring and selling companies have been changed to Investor Limited and Target Company limited respectively for confidential reasons, the information and events here are factual and all the exhibits represent actual financial information of both companies especially Target Limited. BACKGROUND & BUSINESS OVERVIEW OF TARGET Target Limited is an aluminium continuous casting and cold rolling mill located in Ghana. The company was set up to implement the fourth processing leg of the proposed integrated aluminium industry for Ghana which comprised; bauxite mining – First leg, refining bauxite into alumina – Second leg, smelting alumina into raw aluminium ingots – Third leg and processing the ingots into flat rolled product – Fourth leg and Target’s business. The company was incorporated as a private company and granted license to commence business on 24th February, 1978 and 22nd March, 1978 respectively. Target was later converted into a public company on 28th May, 1996 and was listed on the Ghana Stock Exchange on the 29th November, 1996. The plant initially commenced operations at a capacity of 10,000 MT and was expanded to 20,000 MT in 1992 and to 30,000 MT by 2002. The company currently operates with a workforce of about 260 staff. Target is the premier flat-rolled aluminium manufacturing company in West Africa and principally...
Words: 8184 - Pages: 33
...GENERAL MILLS, INCORPORATED A Cost Accounting Analysis COMPANY BACKGROUND General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best knows product brands are Betty Crocker, Green Giant, Pillsbury, Old El Paso, Cheerios and Haagen-Dazs. It markets its products through its direct sales, broker and distribution a to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores. The company was founded in 1928 and is based in Minneapolis, Minnesota. GSI’s businesses are organized into three operating segments: U.S. Retail, International, and Bakeries and Foodservice. The U.S. Retail segment includes sales to grocery stores, mass merchandising, and membership stores such as BJ’s, Sam’s and Costco, natural food chains, drug...
Words: 1973 - Pages: 8
...(Tom) ROWLES B.Ec (Hons), Dip.Ed (Monash) A THESIS SUBMITED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN THE SCHOOL OF ACCOUNTING AND LAW OF RMIT UNIVERSITY, MELBOURNE, VICTORIA, AUSTRALIA ii DECLARATION I certify that: Except where due acknowledgement has been made, this thesis is mine alone; and The work has not been submitted previously, in whole or part, to qualify for any other academic award; and The content of the thesis is the result of work that has been carried out since the official commencement date of the approved research programme. THOMAS R. ROWLES iii TABLE OF CONTENTS Chapter Introduction 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Introduction Purpose of the Study Sombart’s Hypothesis An Alternative Model; Entrepreneurial Decision-making Context: The Industrial Revolution and ‘Profit’ The Changing Nature of ‘Investment’ The Great Depression of 1873-96 Intellectual Introspection Irving Fisher and the Conception of Capital and Income 17 17 17 23 25 26 30 32 34 34 35 36 38 38 38 39 43 46 49 50 51 54 55 1.10 Research Issues Identified 1.11 Summary Derivation of Research Issues 2.1 2.2 Introduction Evidence from Extant Accounts 2.2.1 Fixed Assets in Mercantile Accounting 2.2.2 The East India Company 2.2.3 Fixed Assets and Early Industrial Accounting 2.2.4 Capital Asset Accounting After 1870 2.2.4.i Renewal Accounting 2.2.4.ii Double-Account System 2.2.4.iii A Rejected Hypothesis 2.3 Steam and Iron: the ‘Railway Age’ iv 2.3.1 ‘Loco...
Words: 130630 - Pages: 523
...Mechanism for determining selling prices. It is a cost management tool. TATA tries to manufacture a car at Rs. 1 ,00,000. – is a typical example for target costing. 42. Stages of target costing 1. Determine the target price which customers will be prepared to pay for the product 2.Deduct a target profit margin fro the target price to determine the target cost 3. Estimate the actual cost of the product 4.If estimated actual cost exceeds the target cost , investigate ways of driving down the actual cost to the target cost 43. Target costing-Continues Customer oriented approach Used by Japanese copanies and recently adopted by Europe and the USA. Recently call canters are trying to adopt this as Indian currency strengthened. 44. Procedures: 1.Market research to find the customer’s perceived value-tear down analysis-examining the competitors’ products-dismantling of the competitor's product.use value engineering 2.How customers differentiate the product from the competitors 3.Target profit margin depends on planned return on investment and fix % of profits on sales 4.Decomposed into a target profit for each product. 5.Deduct the target profit from target price 6.Compare with the predicted actual cost. 7. If predicted cost>target cost then efforts are made to close the gap. 45. What is required? Team approach Team members include: 1.designers 2. engineers 3. Purchasing 4. manufacturing 5. marketing 6. management accounting personnel The discipline of a team approach...
Words: 5242 - Pages: 21
...marketing plan. As a result, we continued to expand our converted product offerings into the mid/premium tier market, creating new sales opportunities which resulted in shipments of 8.2 million cases, or approximately 53,000 tons, an increase of 16.2% over case shipments in 2012. More specifically, during 2013, our net sales increased 15.4% to $116.4 million compared to $100.8 million in 2012. This included a 21.1% increase in converted product sales. Our sales of mid-tier and premium tier products comprised 37.9% of our unit net sales in 2013, compared to 15.0% in 2012 and 6.8% in 2011. We also focused considerable efforts on controlling production costs while improving quality attributes to supplement the high quality production capabilities of our converting lines. Our increased sales, along with our focus on controlling production costs, helped us achieve earnings per diluted common share of $1.67 in 2013, a 41.5% increase compared to $1.18 per diluted common share in 2012. Additionally, our EBITDA in 2013 increased to $26.2 million, or 23.0%, compared to $21.3 million in 2012. We also continued our trend of positive operating cash...
Words: 35963 - Pages: 144
...COST MANAGEMENT AND PRODUCTION CONTROL FOR CONSTRUCTION COMPANIES Marchesan, P.R.C.1; Formoso, C. T.2 ABSTRACT Construction, like other industries, has been experiencing profound changes involving both the business environment and internal organization. In this context, new cost management information that provides better understanding and helps managing increasingly turbulent and complex production processes is needed. Activity-based costing (ABC) has been suggested as the leading contender method to replace traditional cost accounting systems, due to its capability to make the processes and activities performed in the organization more transparent and observable. This paper reports the main results of a research project which aimed to develop a cost accounting system capable of providing useful information to manage production processes in construction and devise a model that integrates this system to the Production Planning and Control process, based on the new operations management paradigm and on the ABC ideas. The study involved three case studies, a series of interviews with construction managers and the development of prototype software. The main conclusions of this research work are that the cost information provided by the proposed management accounting system (a) makes the production processes more transparent; (b) helps to identify production inefficiencies; (c) encourages managers to introduce corrective actions; and (d) allows the evaluation of corrective actions...
Words: 5147 - Pages: 21
...Part I Introduction To understand Financial Trend Analysis encompasses an understanding of one of the most challenging responsibilities facing local governments, and cities across the entire country are more aware now than ever before of how necessary it is to achieve a quality level of fiscal health to be sustainable over the long term. Governments can utilize analytical skills and financial indicators to perform assessments of the organization’s fiscal health. This type of assessment we are able to gain some insight on an organization & determine what symptoms might be contributing to its fiscal distress. It also provides information on what additional testing and analysis needs to be done in order to get a more accurate picture of the organization’s fiscal problems. Problems can then be treated in the most effective way to achieve the level of fiscal health that needed in order to serve its citizens. City Officials Chelsea City Council Juanita Champion jchampion@cityofchelsea.com David Ingram dingram@cityofchelsea.com Alison Moore Nichols alisonnichols@cityofchelsea.com Tony Picklesimer tpicklesimer@cityofchelsea.com Dale Neuendorf dneuendorf@cityofchelsea.com Part II Chelsea Financial Overview & Indicators Part A Community Indicators A-1 Population The Government, incorporated in 1996, is located in Shelby County in north central Alabama. In the year 1996, its population was estimated at 906 and has grown to 2,949 today, making...
Words: 3263 - Pages: 14
...Bank Directors and Senior Management are the agent of shareholders. © International survey reveals that the the Bank Management does not adequately consider the risk management information in strategic decision making. 5 CEO and Directors of Financial Institutions are currently facing … Two Major Challenges 6 Two Challenges First v Creation of Value for the Shareholders v Need to deliver ever increasing returns as per the Expectation of the shareholders Second Keep the Capital without Erosion 7 First Challenge Senior management believes that Superior Risk Management can create value to the shareholders But not Sure - HOW. 84% of the managers believe that the risk management can improve price earning ratios and reduce cost of capital which again suggests that there is a clear link between Risk Management and Shareholders value. 8 Second Challenge The Regulators so far managed the risk by requiring the banks to reserve regulatory capital based on strategic formulas. Such formula is appeared to be not appropriate under current risk prone business The Basel II will require FBanks to manage risk not only reserving regulatory...
Words: 7448 - Pages: 30
...has a great deal of control and influence over the external |TRUE | | |stakeholders of that business. | | |3 |A micro business is a type of small business. |TRUE | |4 |A public sector organisation is owned by private shareholders who are able to trade its shares |TRUE | | |freely on the stock exchange. | | |5 |The letters Pty Ltd after the name of a business indicate that it is not incorporated. |FALSE | Total Section A: 5 marks Section B: Multiple-choice questions Select the most correct answer. Question 1 A business organisation will always have: A. paid employees. B. more than three people involved. C. the letters Ltd after its name. D. stakeholders. Question 2 Which of the following would be classified as a public sector organisation? A. the Royal Society for Prevention to Cruelty to Animals (RSPCA) B. the Body Shop C. the Australian Broadcasting Corporation (ABC) D. Epworth Private Hospital...
Words: 2448 - Pages: 10
...By: Ateeba Abid MBA (HRM) Internship Report submitted in partial fulfillment of The requirements for the degree of MBA Department of Business Administration GC University, Faisalabad 1 Masood Textile Mills CERTIFICATE BY THE RESEARCH SUPERVISOR I certify that the contents and form of internship report submitted by Mr./Mrs………………………………, Roll No………….. has been found satisfactory and according to the prescribed format. I recommend it be processed for evaluation by the External Examiner for the award of the degree. Signature…………………................. Name: .............................................. Stamp………………………. Chairperson Dean, Faculty of Management Sciences, GC University, Faisalabad. 2 Masood Textile Mills 3 Masood Textile Mills 4 Masood Textile Mills I would like to dedicate this project report To my beloved parents and respected teachers, because whatever i am today is all due to their prayers and their support 5 Masood Textile Mills Preface It is the age of information & competition. The scientific advancement has made the life more dynamic & competitive worldwide. So one must have practical knowledge and trained enough to live successfully in present competitive situation because it is becoming difficult to survive without creating changes & adapting ourselves according to these changes. The students of MBA receive knowledge during their study, has completely theoretical base. Their ideas remain unsaturated,...
Words: 6853 - Pages: 28
...sector of the country. The BSRM Group is known for its long exposures in all sub- sectors of steel industry since 1952 including ship breaking, scrap processing, and billet manufacturing, manufacturing of MS rod as well as in other ancillary operations. Bangladesh Steel Re- rolling Mills Limited (BSRM), the flagship company of BSRM Group was established in 1985 for automated steel re- rolling mill and has been operating successfully. In order to cater to the increased market demand, the group established BSRMS with a production capacity of 375000 M ton, per year in 2002. It is the first ever fully automated steel re- rolling plant in the country and also regarded as the largest plant in terms of capacity in the country. The product has come out under the brand name of “BSRM Xtreme 500W” round bars. Such rods are superior equipment in the construction. The project has been conceptualized by German requirements in construction. The project has been conceptualized by German Consultants “Badische Stahl Engineering (BSE)” and the complete plant & machineries have been supplied by Danieli Group, Italy- one of the three largest suppliers of equipments and plants in metal industry worldwide. It was incorporated on 20 July 2002 under the companies Act 1994 as a private limited company with an authorized and paid up capital Tk. 150 million and Tk. 0.50 million respectively and covered into public limited company on 20th December 2006. Meanwhile, the authorized capital and paid up capital...
Words: 6937 - Pages: 28
...Company had the following account balances for the quarter ending March 31, unless otherwise noted: Work-in-process inventory (January 1) $ 140,400 Work-in-process inventory (March 31) 171,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manufacturing labor 480,000 Indirect manufacturing labor 186,000 Property taxes on manufacturing plant building 28,800 Salespersons' company vehicle costs 12,000 Depreciation of manufacturing equipment 264,000 Depreciation of office equipment 123,600 Miscellaneous plant overhead 135,000 Plant utilities 92,400 General office expenses 305,400 Marketing distribution costs 30,000 Required: a. Prepare a cost of goods manufactured schedule for the quarter. b. Prepare a cost of goods sold schedule for the quarter c. Indentify inventoriable and period costs d. Explain why product costs are classified in different ways for different purposes. Use examples to support your explanation. Question 3 (5 marks) The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the...
Words: 1460 - Pages: 6
...producer in the United States, although it produced only slightly more steel than it did in 1902, after significant downsizing in the 1980s. U.S. Steel is a former Dow Jones Industrial Average component, listed from April 1, 1901 to May 3, 1991. It was removed under its USX Corporation name with Navistar International and Primerica. Formation J. P. Morgan and the attorney Elbert H. Gary founded U.S. Steel in 1901 (incorporated on February 25) by combining Andrew Carnegie's Carnegie Steel Company with Gary's Federal Steel Company and William Henry "Judge" Moore's National Steel Company for $492 million ($13.58 billion today). It was capitalized at $1.4 billion ($38.63 billion today), making it the world's first billion-dollar corporation. At one time, U.S. Steel was the largest steel producer and largest corporation in the world. In 1907 it bought its largest competitor, the Tennessee Coal, Iron and Railroad Company, which was headquartered in Birmingham, Alabama. This led to Tennessee Coal's being replaced in the Dow Jones Industrial Average by the General Electric Company. The federal government attempted to use federal antitrust laws to break up U.S. Steel in 1911, but that effort ultimately failed. Time and competitors have, however, accomplished nearly the same thing. In its first full year of operation, U.S....
Words: 5405 - Pages: 22
