Lies, damned lies, and cost accounting : how capacity management enables improved cost and cash flow management /
Reginald Tomas Lee, Sr.
- First edition.
- New York, New York (222 East 46th Street, New York, NY 10017) : Business Expert Press, (c)2016.
- 1 online resource (xvi, 121 pages)
- Managerial accounting collection, .
Includes bibliographies and index.
1. Blue pill or red pill? -- 2. The foundation -- 3. Profit has little to do with making money -- 4. Revenue recognition -- 5. The practice of costing -- 6. Cost definitions -- 7. Understanding efficiency -- 8. Inventory -- 9. Depreciation -- 10. Revisiting the objective, cash and decision-making -- 11. Transactions and capacity -- 12. Input capacity -- 13. Output capacity -- 14. Understanding the basics of capacity dynamics -- 15. Understanding the cost dynamics of capacity -- 16. Do you need accounting? -- 17. Getting managerial information from capacity -- 18. Explicit cost dynamics revisited -- 19. What is explicit cost dynamics? -- 20. Worth -- 21. The red pill -- Appendix A -- Appendix B -- Index.
Business leaders rely on accounting data such as profit and calculated costs as a guide to whether they are making money. Should they? Accounting was designed to report financial performance not model cash flow. Accruals can disconnect cash flow from the timing and extent to which it occurs. Statements of cash flow do not provide insight into what was bought and how efficiently it was used. Costs and profits are not absolute, they change based on the model you use to calculate them. To manage cash, you must manage what you buy and how effectively you use it. The largest expenditure for most companies is capacity; space, labor, materials, equipment, and technology. Unless you model and manage capacity effectively, you will not achieve the cash flow results you seek. This book introduces capacity management, describes cash flow dynamics, and offers ideas about how to manage each both. After reading it, you will be able to see, understand, and manage cash flow as never before.
Mode of access: World Wide Web. System requirements: Adobe Acrobat reader.
9781631570667
Managerial accounting. Cost accounting.
Accounting Activity based costing Activity cost Average costing Break-even Capacity Capacity accounting Capacity cost Capacity management Cash Cash flow Cash management Constraint Cost Cost accounting Cost allocation Cost assignment Cost curve Costing Cost improvement Cost management Cost reduction Costs Customer profitability Demand Demand management Dynamic capacity Economic costs Efficiency Effectiveness Explicit cost dynamics Goldratt Input capacity Isocost Isocost curve Just-in-time Lean Lean accounting Management accounting Managerial accounting Metrics Operational improvement Optimization Output capacity Performance Performance improvement Performance management Process costing Process design Process Improvement Process optimization Product costing Product profitability Productivity Profit Return on investment ROI Service costing Service profitability Six sigma Standard costing Static Capacity Theory of Constraints Throughput accounting Total quality management Unit profit WACA Worth Worth and capacity analysis