Article Abstract:
It is important to understand differences in accounting practices from one country to the next, especially for multinational corporations. In England, the Accounting Standards Committee follows stricter guidelines than its U.S. equivalent. United Kingdom(UK) reports are geared toward the shareholders rather than toward regulatory bodies, and candidates are required to acquire practical experience before taking the qualifying exam. However, unlike the U.S., the UK does not require a university degree for CPA candidates. Inflation accounting practices also differ between the U.S. and the UK. In the UK, auditors are permitted to own stock in client firms. The French accounting is the most complex, based on tax law, and business managers are held responsible for the success of their company. The German system is based on law and tax codes, and the Netherlands emphasizes economics.
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Article Abstract:
Frozen-to-current cost variance (FCV) is the difference between current standard cost and the beginning of the year-standard-cost, times actual output. It is used for inventory valuation and cost control of manufacturing systems that have changed processes, materials, or product design in the middle of a cycle. FCV shows the direction and amount of variation from the original budget. FCV also highlights changes from frozen-to-current standards so that actual costs are compared only to current standards. It indicates how much more or less goods cost with and without change in standards. FCV introduces accountability into the system by showing the impact of budgeting and standard costing change in a separate account.
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Article Abstract:
Merrill-Continental Company Inc has developed a process cost management system that improves production planning and financial accountability. The system was developed from the shop floor rather than in the executive suite, and therefore more accurately reflects manufacturing activity. The system is accessible by a personal computer on the manufacturing floor, so performance data is available immediately, as is information on the profitability of each product. The system can be expanded to include bonus performance measurement, cost reduction budgeting, and pricing justification.
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