What production managers really want to know ... management accountants are failing to tell them
Article Abstract:
A study was conducted to examine the usefulness of accounting information to managers. Seventy-three executives from 12 manufacturing firms in the US and Canada were interviewed regarding their daily activities, the kind of information required to perform these activities and the means by which these managers collect information. Results revealed that production managers rely more heavily on physical unit data than on financial data in day-to-day operations. Dollar or financial information is more useful in production control. The managers who participated in the study cited timeliness, accuracy and relevance as the three features they look for in information. The study also revealed that managers collect information through their own networks that consists of items including internally generated information and personal observation. Ways to make management accounting information more useful are recommended.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1993
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New rules for allocating the purchase price of a business
Article Abstract:
The Tax Reform Act of 1986 changes the way in which buyers and sellers can allocate the purchase price of a business. The old rules were inconsistent, especially for nondepreciable and depreciable assets. Buyers tended to attribute as much as possible to depreciable assets and as little as possible to goodwill. Sellers, by contrast, overvalued goodwill. The new law restricts buyers from attributing more than fair market value of acquired tangible assets. The new acquisition rules and those pertaining to stock acquisition are both governed by Section 338. The Treasury Department has retained the right to check all information about money attributed to goodwill.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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