By David E. Stout, Ph.D., and Joseph M. Propri
The authors applied a pilot test of Time-Driven Activity-Based Costing (TDABC) principles to XYZ Company’s existing ABC structure to see what impact the methodology might have. They found that TDABC can provide more accurate costing information than a traditional ABC system and that enterprise resource planning (ERP) systems play an important role in implementing advanced costing systems.
Throughput Metrics Meet Six Sigma
By Shaun Aghili, CMA, CIA, CISA, DBA
The author shows how Throughput Accounting (TA) metrics can be combined with Six Sigma’s DMAIC methodology and various time-tested analysis and measurement tools to resolve resource constraint issues more effectively. This way, the entire system, not just a piece of it, will benefit from a more relevant cost accounting system that helps increase product quality, process integrity, or both.
Convergence Collaboration: Revising Revenue Recognition
By Jack T. Ciesielski, CPA, CFA, and Thomas R. Weirich. Ph.D., CPA
The authors discuss the joint FASB/IASB proposed accounting standard on revenue recognition and the changes that could affect the consulting, engineering, construction, and technology industries in particular. They also discuss the critical role that contracts play. As the Boards are going to re-expose the standard in the third quarter of 2011 to get more feedback before going further, management accountants might want to offer more input.
Do Management Accountants Perform Decision Analysis Better than Accounting Students?
By Lisa M. Victoravich, Ph.D., CPA
To answer this question, especially because management accountants are now strategic business partners rather than “bean counters” and need the commensurate skills, the author gave each group a case study. Management accountants did perform better, but the results also produced some interesting information for educators.