By Anton van der Merwe
This article provides an overview of Chapter Zero, the introductory chapter to the latest edition of the preeminent cost accounting textbook on German standard costing, and looks at some developments that have had an impact on U.S. management accounting.
0 Introduction: Marginal Costing as a Management Accounting Tool
By Wolfgang Kilger, Jochen Pampel, and Kurt Vikas
This is a translation and reprint of the first chapter in the definitive textbook about German cost accounting: Flexible Plankostenrechnung und Deckungsbeitragsrechnung. The chapter gives insight into the changes in management accounting over the past 20 years and discusses ways the profession can move forward.
Aligning Corporate Governance with Enterprise Risk Management
By Paul J. Sobel, CPA, and Kurt F. Reding, Ph.D., CMA, CPA
What exactly is corporate governance? How is corporate governance related to ERM? Who should be responsible for what? Who should communicate what with whom? The authors share a conceptual framework they developed to get their arms around this interaction and improve corporate governance.
The Rigorous Business of Budgeting for International Operations
By Ken Milani, Ph.D., CPA, and Juan M. Rivera, Ph.D., CPA
Several international issues influence the budgeting process for companies that operate in a global business environment, such as foreign currency exchange rates, interest rates, inflation, and risks such as September 11. The authors discuss how each impacts and influences the budgeting process and specific budgets such as sales budgets, expense budgets, or capital budgets.
Using Activity-Based Costing to Assess Channel/Customer Profitability
By DeWayne L. Searcy, Ph.D., CMA, CPA
To survive in today’s competitive world, companies need to understand the profitability picture of their customers--who is a profitable customer and who isn’t. This article shows how the CFO of an employment services company used ABC to analyze the company’s profitability picture at the customer channel level and the individual customer level.
How to Pursue a Grassroots Mentoring Program
By A. Anthony Falgiani, Martin J. Coe, and Joel Thompson
In January 2002, the authors received an Innovations in Accounting Education Grant from IMA that they used to establish a grassroots mentoring program at the IMA chapter level. The program provides students with mentors who are accounting professionals that will give them a good look at the profession and tips on how to succeed. Here is the story of how they set up the program and why the results were successful.