Who is accounting for the cost of capacity?
Article Abstract:
Companies can become more competitive if they learn how to quantify the cost of their capacity resources regardless of whether they are used or unused. The effective management of capacity and its cost requires measuring the potential output of resources allocated. A study of capacity accounting in 12 companies was conducted to determine how this function is handled in US business. Findings showed that no company had a clear policy statement or guideline devoted to capacity management. Nevertheless, many reported operating on the basis of implied or informal policies. The responsibility for capacity management was handled by manufacturing or operations people, such as vice president of manufacturing, plant manager, production control manager and operations planning group. Moreover, capacity measurement was focused on volume to be realized and not on realizable output.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1997
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William M. Lybrand, a cost accounting pioneer
Article Abstract:
William M. Lybrand (1867 to 1960) was the second president of the National Association of Accountants (then known as the National Association of Cost Accountants) and founded the accounting firm that is today known as Coopers and Lybrand. Lybrand's career and personal life are briefly described. Professionally, he championed integrated cost systems in the early 1900s, having formed his own firm in 1898, and was a charter or founding member of several professional accounting societies. Lybrand believed that the professionalism of the accounting industry depended on education; although he had no formal education in accounting himself, he was instrumental in encouraging the Wharton School of Business at the University of Pennsylvania to establish a degree program in accounting.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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Is your cost accounting system benching your team players?
Article Abstract:
Cost accounting systems are used to provide relevant cost information for planning and control and, in addition, are used in management evaluation and reward programs. This dual role often leads to the self-serving manipulation of cost allocation systems to the detriment of organizational goals. Such manipulation distorts cost information and negates its usefulness for planning purposes. It also lessens the effectivity of individual incentive programs. Three recommendations are provided; these are: that performance evaluation/reward be decoupled from the cost accounting system; that individual evaluation/reward systems be discarded in favor of better screening processes at the entry level; and that any alteration of the allocation system be carefully planned.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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