Replacing fixed assets in the construction industry
Article Abstract:
A model is presented that is used to help a heavy construction company make decisions about replacing fixed assets such as construction equipment. The model was created to answer two separate questions about capital investment decisions: when should new equipment be purchased, and when should existing assets be disposed? The model yields a net present value based on differential operating costs, tax shields, purchase-overhaul costs, salvage values, revenue, and flows discounted at the chosen cost of capital. Three problem areas involve establishing purchase versus salvage values, repair and maintenance costs, and machine productivity. Two different indices are used to estimate differential costs and revenues, a repair cost index and a productivity index. These indices make it possible to establish a ceiling price for equipment bids at auctions.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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Let's stop pretending all accountants are alike
Article Abstract:
Several professional organizations believe that the undergraduate accounting education system needs to be reformed. The Accounting Education Change Commission believes that one of its problems in providing adequate training is that the undergraduate accounting program attracts students who are capable of solving structured problems, but accounting practice involves solving unstructured problems. One proposal for improving the curriculum is the use of a program consisting of six credit hours of financial accounting, six hours of intermediate accounting, three hours of managerial accounting, and three hours of auditing and accounting systems, which would leave 12 hours for specific training.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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A tale of two networks
Article Abstract:
Growth in a company often renders a single-user computerized accounting system impractical. An expanding company can choose between installing a local area network (LAN) or running several terminals from a Xenix-operated microcomputer. Lan-based systems can be practical for companies that are already operating several AT compatible microcomputers. They are however costly to operate and maintain since many of their hardware components are manufactured by different suppliers. The Xenix system is superior in performance, reliability, and cost.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
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