Controller’s Guide to Planning and Controlling Operations

Steven M. Bragg9780471576808, 0471576808

Книга Controller’s Guide to Planning and Controlling Operations Controller’s Guide to Planning and Controlling OperationsКниги Экономика Автор: Steven M. Bragg Год издания: 2004 Формат: pdf Издат.:Wiley Страниц: 384 Размер: 3,4 ISBN: 0471576808 Язык: Английский0 (голосов: 0) Оценка:The Controller’s Guide to Planning and Controlling Operations is a comprehensive guide for controllers, CFOs, and budget managers who need to determine: The soundness of sales forecasts The best approach for setting product prices The profitability of customers and market segments Federal tax remittance rules The impact of a just-in-time system on inventory levels Packed with clear and realistic strategies, it helps create a coherent framework of financial plans that apply to the full breadth of ongoing corporate control systems, as well as illustrates: When to use labor and materials standards to control manufacturing How to control research and development costs How to grant appropriate credit levels to customers How to set up an effective capital budgeting process How to create a cost-of-capital calculation

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Table of contents :
Cover Page……Page 1
Title: CONTROLLER’ S GUIDE TO TO PLANNING AND CONTROLLING OPERATIONS……Page 3
ISBN 0471576808……Page 4
PREFACE……Page 5
ACKNOWLEDGMENTS……Page 7
CONTENTS……Page 9
MEANING OF ACCOUNTING/STATISTICAL CONTROL……Page 11
NEED FOR STANDARDS……Page 12
DEFINITION OF STANDARDS……Page 13
ADVANTAGES OF STANDARDS……Page 14
RELATIONSHIP OF ENTITY GOALS TO PERFORMANCE STANDARDS……Page 15
TYPES OF STANDARDS NEEDED……Page 17
TREND TO MORE COMPREHENSIVE PERFORMANCE MEASURES……Page 21
BENCHMARKING……Page 23
BALANCED SYSTEM OF PERFORMANCE MEASURES……Page 25
SETTING THE STANDARDS……Page 26
USE OF STANDARDS FOR CONTROL……Page 27
PROCEDURE FOR REVISING STANDARDS……Page 31
RECORDING STANDARDS……Page 32
MANAGEMENT USE OF STANDARD COSTS……Page 33
SALES MANAGEMENT CONCERNS……Page 35
CONTROLLER’S ASSISTIVE ROLE IN SALES MANAGEMENT PROBLEMS……Page 36
CONTROLLER’S INDEPENDENT ROLE IN THE PLANNING AND CONTROL OF SALES……Page 39
SALES ANALYSIS……Page 40
SALES PLANNING: BASIS OF ALL BUSINESS PLANS……Page 45
STEPS IN DEVELOPING THE NEAR-TERM SALES PLAN/BUDGET……Page 46
CONTROL PHASE……Page 48
METHODS OF DETERMINING THE SALES LEVEL……Page 49
USEFUL SOURCES OF FORECASTING INFORMATION……Page 52
FORECASTING THE BUSINESS CYCLE……Page 54
SALES STANDARDS……Page 59
SALES REPORTS……Page 64
PRODUCT PRICING: POLICY AND PROCEDURE……Page 65
DEFINITION……Page 82
SALES MANAGER AND MARKETING EXPENSES……Page 83
MARKETING EXPENSE ANALYSIS……Page 84
TYPES OF ANALYSES……Page 85
PLANNING MARKETING EXPENSES……Page 98
SPECIAL COMMENTS ON ADVERTISING AND SALES PROMOTION EXPENSE……Page 106
MARKETING EXPENSE STANDARDS……Page 110
GENERAL ASPECTS OF MANUFACTURING……Page 116
DIRECT MATERIAL COSTS: PLANNING AND CONTROL……Page 121
LABOR COSTS: PLANNING AND CONTROL……Page 129
RESPONSIBILITY FOR PLANNING AND CONTROL OF MANUFACTURING EXPENSES……Page 140
APPROACH IN CONTROL OF MANUFACTURING EXPENSES……Page 141
PROPER DEPARTMENTALIZATION OF EXPENSES……Page 142
VARIATIONS IN COST BASED ON FIXED AND VARIABLE COSTS……Page 143
VARIATIONS IN COST BASED ON DIRECT LABOR……Page 146
VARIATIONS IN COST BASED ON BATCH SIZE……Page 147
VARIATIONS IN COST BASED ON OVERHEAD……Page 149
VARIATIONS IN COST BASED ON TIME……Page 151
COST ESTIMATION METHODS……Page 152
NORMAL ACTIVITY……Page 156
ALLOCATION OF INDIRECT PRODUCTION COSTS……Page 157
BUDGETARY PLANNING AND CONTROL OF MANUFACTURING EXPENSES……Page 159
SECURING CONTROL OF OVERHEAD……Page 166
INDIRECT LABOR: A MORE PRECISE TECHNIQUE……Page 168
OTHER ASPECTS OF APPLYING BUDGETARY CONTROL……Page 169
ROLE OF THE CONTROLLER……Page 171
REPORTS FOR MANUFACTURING EXECUTIVES……Page 173
RESEARCH AND DEVELOPMENT ACTIVITIES……Page 180
R&D ACTIVITIES IN RELATION TO CORPORATE OBJECTIVES……Page 181
INTEGRATION OF R&D WITH OTHER FUNCTIONS……Page 182
ACCOUNTING TREATMENT OF R&D IN FINANCIAL STATEMENTS……Page 183
ELEMENTS OF R&D COSTS……Page 185
ROLE OF THE FINANCIAL EXECUTIVE IN R&D……Page 186
DETERMINING THE TOTAL R&D BUDGET……Page 187
INFORMATION SOURCES ON R&D SPENDING……Page 188
ESTABLISHING THE R&D OPERATING BUDGETS……Page 189
DETAILED BUDGETING PROCEDURE……Page 194
OTHER CONTROL METHODS……Page 195
EFFECTIVENESS OF R&D EFFORT……Page 199
COMPONENTS OF G&A EXPENSE……Page 204
CONTROL OVER G&A EXPENSES……Page 205
REDUCING G&A EXPENSES……Page 211
BUDGETING G&A EXPENSES……Page 215
OBJECTIVES OF CASH PLANNING AND CONTROL……Page 217
THE CASH FORECAST……Page 218
CASH COLLECTIONS……Page 230
CASH DISBURSEMENTS……Page 235
INTERNAL CONTROL……Page 236
REPORTS ON CASH……Page 239
CASH FLOW RATIO ANALYSIS……Page 242
IMPACT OF NEW INFORMATION TECHNOLOGY AND ORGANIZATIONAL STRUCTURES……Page 243
INVESTMENT OF SHORT-TERM FUNDS……Page 244
GRANTING CREDIT TO CUSTOMERS……Page 249
CUSTOMER MARGIN ANALYSIS……Page 251
COLLECTIONS TASK……Page 252
MEASUREMENT OF ACCOUNTS RECEIVABLE……Page 255
CONTROL OVER ACCOUNTS RECEIVABLE……Page 257
BUDGETING FOR ACCOUNTS RECEIVABLE BALANCES……Page 259
COSTS AND BENEFITS OF CARRYING INVENTORY……Page 261
ROLE OF THE CONTROLLER……Page 263
MATERIAL REQUIREMENTS PLANNING SYSTEMS……Page 265
JIT MANUFACTURING SYSTEMS……Page 266
INVENTORY REORDERING SYSTEMS……Page 271
OBSOLETE INVENTORY……Page 273
REDUCING INVENTORY……Page 274
INVENTORY CUTOFF……Page 276
BUDGETING FOR RAW MATERIALS……Page 277
BUDGETING FOR WORK-IN-PROCESS……Page 282
BUDGETING FOR FINISHED GOODS……Page 283
CONTROLLER’S RESPONSIBILITY……Page 288
CAPITAL BUDGETING PROCESS……Page 290
ESTABLISHING THE LIMIT OF THE CAPITAL BUDGET……Page 291
INFORMATION SUPPORTING CAPITAL EXPENDITURE PROPOSALS……Page 292
METHODS OF EVALUATING PROJECTS……Page 293
PAYBACK METHOD……Page 294
ACCOUNTANTS’ METHOD……Page 295
DISCOUNTED CASH FLOW METHODS……Page 296
HURDLE RATES……Page 301
COST OF CAPITAL — A HURDLE RATE……Page 302
FOREIGN INVESTMENTS……Page 304
IMPACT OF ACTIVITY-BASED COSTING……Page 305
CLASSIFYING AND RANKING PROPOSED CAPITAL PROJECTS……Page 306
BOARD OF DIRECTORS’ APPROVAL……Page 307
PROJECT AUTHORIZATION……Page 312
POSTPROJECT APPRAISALS OR AUDITS……Page 314
OTHER ASPECTS OF CAPITAL EXPENDITURES……Page 317
OBJECTIVES OF LIABILITY MANAGEMENT……Page 326
DIRECT LIABILITIES……Page 327
ILLUSTRATIVE PROVISIONS OF CREDIT AGREEMENTS……Page 329
PLANNING THE CURRENT LIABILITIES……Page 334
STANDARDS TO MEASURE AND CONTROL CURRENT LIABILITIES……Page 335
CORRECTIVE ACTION……Page 338
SOURCES OF INFORMATION ON DEBT CAPACITY……Page 339
STANDARDS FOR DEBT CAPACITY……Page 340
BOND RATINGS……Page 343
CONTINGENCIES……Page 346
LONG-RANGE FINANCIAL PLAN……Page 347
MANAGING LIABILITIES: SOME PRACTICAL STEPS……Page 349
ACCOUNTING REPORTS ON LIABILITIES……Page 352
INTERNAL CONTROLS……Page 353
ROLE OF THE CONTROLLER……Page 354
GROWTH OF EQUITY AS A SOURCE OF CAPITAL……Page 355
RETURN ON EQUITY AS RELATED TO GROWTH IN EARNINGS PER SHARE……Page 356
GROWTH IN EARNINGS PER SHARE……Page 358
COMPONENTS OF COST OF CAPITAL……Page 359
CALCULATING THE COST OF DEBT……Page 360
CALCULATING THE COST OF EQUITY……Page 361
CALCULATING THE WEIGHTED COST OF CAPITAL……Page 363
DIVIDEND POLICY……Page 365
OTHER TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY……Page 367
LONG-TERM EQUITY PLANNING……Page 368
OTHER CONSIDERATIONS……Page 374
Index……Page 379