Management Accounting Best Practices: A Guide for the Professional Accountant

302 Pages·2007·2.5 MB·English

by  Steven M. Bragg

MANAGEMENT
ACCOUNTING
BEST PRACTICES
A Guide for the Professional
Accountant
STEVEN M. BRAGG
JohnWiley&Sons,Inc.

Management Accounting
Best Practices
A Guide for the Professional Accountant

MANAGEMENT
ACCOUNTING
BEST PRACTICES
A Guide for the Professional
Accountant
STEVEN M. BRAGG
JohnWiley&Sons,Inc.
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Contents
Preface xi
About the Author xiii
Free Online Resources bySteve Bragg xv
1 BudgetingDecisions 1
HowDoesthe System of Interlocking Budgets Work? 1
What Doesa Sample Budget Look Like? 10
HowDoesFlexBudgetingWork? 28
What Best PracticesCanI Apply tothe Budgeting Process? 29
HowCan I Integratethe Budget into the Corporate ControlSystem? 35
HowDo ThroughputConceptsImpactthe Budget? 37
2 Capital Budgeting Decisions 44
HowDoesa ConstrainedResource Impact Capital Budgeting Decisions? 44
What Isthe True Cost ofa CapacityConstraint? 45
HowDo IIdentifya ConstrainedResource? 47
When Should I Investina ConstrainedResource? 49
Should IIncrease Sprint Capacity? 49
HowCloselyShould ILink Capital Expenditures toStrategy? 50
What Format Should I Use for a Capital Request Form? 51
Should IJudge Capital Proposals Based onTheir
Discounted Cash Flows? 51
HowDo ICalculate the CostofCapital? 54
When Should I Use the Incremental Cost of Capital? 58
HowDo IUse Net Present Value inCapital Budgeting? 60
What Proposal Form Should IRequire for aCash FlowAnalysis? 62
Should IUse the PaybackPeriod inCapital Budgeting? 64
HowCan a Post-CompletionAnalysis Help Me? 65
What Factors Should IConsider for a Site Selection? 67
3 Credit and Collection Decisions 69
HowDo ICreate and Maintain a CreditPolicy? 70
When Should I Require aCreditApplication? 72
HowDo IObtain Financial Information About Customers? 73
HowDoesa Credit Granting System Work? 74
What Payment Terms Should IOfferto Customers? 76
vii