Post retirement benefits: the tip of a financial iceberg
Article Abstract:
The hidden costs of employee retirement plans can be far greater than present projections may indicate. For example, a company with a relatively young workforce may have low initial costs for a health and retirement plan, but the future costs of the plan will increase dramatically as the average age of the workforce increases. The problem is further complicated by the current revisions in accounting standards for pension plans and by legal questions about the degree of benefits that employees are entitled to. Employers should revise their current pay-as-you-go plans to more accurately predict future costs, future annual cash flows, accrual and funding levels under different actuarial methods, and company sensitivity to economic changes.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
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Where did the inventory go?
Article Abstract:
When profits shown in closed-out financial statements do not match those of interim reports, management often believes that an accounting error will be found in the year-end report. In such cases, though, it is often the interim reports that are wrong. Two basic types of variances may occur: a chronic variance, in which a firm regularly misjudges its interim profits, or an acute variance, which occurs when new business conditions make the established error allowances obsolete. Even if a company has sound inventory control measures, routine examinations of cost accounting procedures are recommended to detect unexpected problems, such as lack of complete coordination between inventory and accounting systems or illogically set unit costs.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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How U.S. firms conduct strategic planning
Article Abstract:
The influence of planning variables are examined in a survey of 180 U.S. manufacturing companies, covering the following areas: social, political, and economic factors; structure of industry; characteristics of the organization; consumer or market analysis; and supplier considerations. The highest level of management and some lower levels of management must be involved in all aspects of strategic planning. The management accountant acts as the integrator between the management requirements and the management information system. Consequently, the management accountant should realize what types of data are required for the strategic plan (in addition to financial data).
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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