By Allen I. Schiff, Ph.D., and Jonathan B. Schiff, CMA, Ph.D.
Although pooling-of-interests accounting was outlawed after June 30, 2001, companies that used it in acquisitions before that date continue to enjoy its benefits. Here’s a case study of the merger of Newell Co. and Rubbermaid into Newell Rubbermaid, Inc., that shows the problems with that method of accounting and how the benefits of pooling did not guarantee the merger’s success.
Solving the Production Lot Size Problem When Using ABC in an MRP II Environment
By James E. Williamson, Ph.D., CPA, and William R. Sherrard, Ph.D.
Using activity-based costing (ABC) in a manufacturing resource planning (MRP II) system may create per-unit cost distortions when the shop orders are for different lot sizes. Using an overhead costing table and taking lot size into consideration will help companies get a better handle on costing and pricing estimates.
Using Excel, TOC, and ABC to Solve Product Mix Decisions with More Than One Constraint
By David Perkins, Ph.D., CMA, CPA; Jonathan Stewart, Ph.D.; and Scott Stovall, Ph.D. CPA
The Theory of Constraints (TOC) and activity-based costing (ABC) provide useful information for product mix decisions, but the calculations involved can be complex. Using TOC and ABC data, Excel’s Solver tool can help find the optimal solution for product mix decisions with multiple constraints in a quick, easy fashion.
Accounting and Taxation of Stock Option Plans
By Robertson C. Bertrand, CPA; William J. Cenker, Ph.D., CPA; Robert Bloom, Ph.D; and Gerald P. Weinstein, Ph.D., CPA
Here is a guide to the accounting and tax implications of using stock options in an executive’s total compensation package--particularly when employing a reload feature.
Implementing the Balanced Scorecard Using the Analytic Hierarchy Process
By B. Douglas Clinton, Ph.D., CPA; Sally A. Webber, Ph.D., CPA; and John M. Hassell, Ph.D., CPA
Although many companies are using the balanced scorecard, some are having difficulty with the process of choosing metrics and using them appropriately. The Analytic Hierarchy Process (AHP), a powerful, yet simple, tool, can help.