How forest product companies analyze capital budgets
Article Abstract:
A survey of the capital budgeting process in 29 forest products companies in 1997 reveals that annual capital budgets amounted to about 10% of their total assets. Also, 76% of the respondents used discounted cash flow techniques as their primary evaluation methods in assessing timber-related investments while only 55% used these techniques for assessing plant and equipment purchases. Only 15% utilized the payback period technique as a main evaluation technique for timber investment while 33% used the payback period technique for plant and equipment purchases. The discounted cash flow techniques, particularly internal rate of return and net present value, were more frequently utilized in 1997 than they were in 1977. Moreover, the payback period was found to be the leading secondary technique, although it is more often used for evaluating plant and equipment purchases. The study also identified the factors that influenced capital budgeting decisions.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1998
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How support services can use process control
Article Abstract:
The Oregon Cutting Systems Division (OCSD) of the Blount Inc is actively applying the concept of process control to teach its administrative and support personnel on employee involvement, quality and just-in-time philosophy. The process control strategy gives employees the capability to manage their own performance to attain quality. After gaining success in the application of process control in its production division, OCSD is shifting its efforts to its support service workers through the use of statistical process control and flowcharting. The company has established its daily management program to train non-production employees in focusing on customer needs and standardization and enhancement of their work.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1992
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