Business can't afford these 'no-go' areas

Article Abstract:

Although both marketing and accounting personnel are primarily concerned with corporate profitability, their approaches to profit improvement are so different that they often function as rivals within companies. Accountants must consequently take a broader view of their duties and establish accounting procedures designed to monitor selling prices and sales volumes in the same way that cost accounting methods have been developed to control overhead expenses. Marketing has for too long been treated as a 'no-go' area for accountants. Controllership functions, procedures for managing returns on investment, should also be established in the marketing areas of a corporation. The types of managerial accounting reports that would be generated by accounting for selling prices and sales volumes while controlling marketing's financial aspects are discussed, and hypothetical examples of such reports are provided. These proposed reporting procedures focus on external economic factors relating to customers and competitors, and therefore could better assist companies in assessing their current marketplace position, thus facilitating decision-making affecting future marketing and operational strategies.

Analysis, Marketing management

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An asset manager can work wonders

Article Abstract:

Asset management techniques for alleviating inventory overstock situations without booking a write-down in the inventory's value are discussed. Such techniques generally involve the sale of the overstock items at full market value, with payment receivable in cash and cash equivalents, and the marketing of the inventory on foreign markets, using other than normal distribution channels. Consequently, asset managers must be knowledgeable as to worldwide markets and various distribution networks, as well as company (and client) pricing policies and accounting methods. Asset managers generally charge fees equal to 10 percent of the gross amount of the transaction.

Inventory control, Assets (Accounting), Asset management accounts

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Sales and finance staff should harmonize

Article Abstract:

Conflicts between finance and sales staff can lead to loss of time, energy, and money. Such conflicts are mainly due to the absence of a company policy or objective agreed upon by the whole management team (sales, finance, and credit). Examples of actual situations where policy and communication were one-sided include incorrect assignment of commissions, replacing salesmen's cars after a longer period than usual, reduction of salesmen's commissions, rejected credit accounts, reducing stock levels, reorganization, and cases in which new accounts are opened without following the company's rules.

Sales management, Sales personnel, Salespeople, Great Britain

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