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Summer 2008

MAQ Summer 2008 Cover

Articles

By David E. Stout, Ph.D.; Yan Alice Xie, Ph.D.; and Howard Qi, Ph.D.
The authors provide accounting practitioners with a primer on how to supplement traditional discounted cash flow (DCF) analysis with real options. To illustrate their points, they use an example of a rental car company that is trying to decide whether to buy a conventional gasoline-engine car or a hybrid vehicle to add to its fleet.
By Marco Antonio de Modesti and Scott Eriksen, CMA, CFM, CPA, Ph.D.
Here is the story of how a rail cargo transportation company operating in Brazil and Argentina implemented a new cost accounting system that provided managers with powerful information they needed to better evaluate the needs of their business units.
By Paul A. Mudde, Ph.D., and Parvez R. Sopariwala, Ph.D.
In this extensive analysis of Southwest Airlines’ increase in revenue in 2005, the authors show how several strategic changes the company made improved profits from gains in market size and share, improved financial performance from efficiencies, reduced operating profits from rising costs that were not offset by price increases, and reduced operating profits because of the increased cost of investments in capacity.
By Tara Shawver, DBA, CMA
Are future accounting professionals willing to blow the whistle internally or externally when they see ethics violations? To find out, the author surveyed a group of accounting seniors, getting their opinions about three ethics scenarios, each involving a higher materiality level.
By Harper A. Roehm, CPA, DBA; Larry Weinstein, Ph.D.; and Joseph F. Castellano, Ph.D.
When used properly, statistical process control (SPC) can help companies measure how well their processes are working and figure out how to motivate employees to achieve desired targets.
By Nas Ahadiat, Ph.D.
The author surveyed a sample of IMA members and members of the AICPA to find the skills and abilities that accounting practitioners say are most important for people entering the management accounting profession. The results indicate a need for some changes to accounting curricula.