By Kevin Devine, Ph.D.; Tom Lammert, CMA, CPA; and Priscilla O’Clock, Ph.D., CPA
The concepts of activity-based costing (ABC) can be extended to encompass allocation of assets to activities. This permits management to evaluate product and customer return on investment (ROI) and use the information to make better business decisions.
Are ABC and RCA Accounting Systems Compatible with Lean Management?
By Lawrence P. Grasso, DBA
Companies that use lean systems—those that are continuously striving to eliminate waste—have not adopted ABC and probably will not adopt RCA, either. This article explains why.
Accounting for Lean Manufacturing: Another Missed Opportunity?
By Kay Carnes, Ph.D., CPA, and Scott Hedin, Ph.D.
Many companies are implementing lean accounting techniques, yet management accounting literature and curricula lag in their coverage of these topics. The authors contend that unless accountants increase their efforts to develop, implement, and teach accounting methods that better serve business organizations, the occupation of management accounting may soon be seen as irrelevant.
How to Report a Company's Sustainability Activities
By Gwendolen B. White, Ph.D., CPA
Sustainability reporting, which addresses companies’ responsibilities to keep the environment clean, treat people humanely, and achieve economic goals, has become a vital part of the information that external and internal decision makers use. It also ties in well with balanced scorecard measures.
How to Conduct a Successful Accounting Field Trip
By Donald W. Gribbin
One of the most valuable experiences accounting students can have is participating in a trip to a nearby corporation to see how concepts discussed in the classroom are applied in real-world situations. A successful trip, however, takes a great deal of planning, coordination, and discussion with company personnel way ahead of time.
Can Variance Analysis Make Media Marketing Managers More Accountable?
By Ted Mitchell, Ph.D., and Mike Thomas, Ph.D.
The authors contend that traditional cost variance formulas are not accurate or relevant anymore and that it is time to consider a new set of equations: the Minimum Potential Performance Budget (MPPB). They show how the new model works and apply the calculations to an advertising campaign.