Direct labor cost not always relevant at H-P
Article Abstract:
A case study is given for accountants of a high-tech company who have acted to terminate direct labor as its own cost category. The high-tech company adopting this innovative approach to cost accounting is Hewlett-Packard. Direct labor for manufacturing will now be included as overhead expenses. Roughly 10,000 journal citations were done away with, as a result of the simplified inventory accounting technique adopted. The Japanese have been proficient at manufacturing large volumes of quality products, resulting in the elimination of inventories.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1985
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Comptrollership at ITT
Article Abstract:
ITT Corp. reported sales of $19.5 billion for 1984. At the corporate level, comptrollership and treasury responsibilities are divided among the executive vice president, chief accounting officer, comptroller, and chief financial officer. All corporate units finish the books each month and report all results to management within eleven working days to the fiscal end-of-the-month.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1985
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Breaking through the breakeven barriers
Article Abstract:
There are many theoretical and practical barriers for consolidating conventional breakeven analyses. The profit geometry type must take into account inflation, inventory, costs, capacity, and products. Creeping cost is a problem of selling prices being less than the added cost of inflation for the products sold.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1985
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