Article Abstract:
Just-in-time (JIT) manufacturing methods require new cost management measures based on activity-based accounting which identify those activities that products consume and those resources consumed by the activities. Activity-based accounting produces more accurate product costs by tracing the amount of activity volume consumed by products. The application of activity-based accounting should serve to emphasize the simplicity principle underlying JIT; should be used as an opportunity to rationalize those production processes the activities support; and should be used as a management tool. Successful implementation requires early involvement in JIT and total quality management efforts, training staff in continuous improvement techniques and problem solving, placing accountants on the factory floor, and strict adherence to continuous improvement principles in accounting work.
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Article Abstract:
The acceptance or rejection of push-down accounting by corporations varies according to circumstances (such as the amount of outstanding debt incurred by the company and whether there has been a percentage change in company ownership). Push-down accounting methodologies restate a corporation's assets, liabilities and stockholders' equity, according to the stock valuations involved in the most recent change in corporate ownership (the carrying value of the stock to the most recent investor in the corporation). The use of push-down accounting results in capital enhancement and a stronger balance sheet, while simultaneously reducing the reported net income of the company. These effects of push-down accounting are illustrated through hypothetical examples, and the ethics and propriety of applying push-down in various situations are pursued.
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Article Abstract:
Organizations should subject their accounting activities to a cost-benefit analysis and eliminate activities that do not add value. The factors that can detract from the value of a firm's accounting system include budget-induced sales behavior, the presence of accounting reserves, and meetings to discuss variances in the budget. Value-added accounting systems are those that emphasize simplicity, encourage cooperation and continuous improvement, and consider relevant issues.
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