Lies, damned lies, and cost accounting : how capacity management enables improved cost and cash flow management / Reginald Tomas Lee, Sr.

Format:

Book

Author/Creator:

Yu-Lee, Reginald Tomas, 1964- author.

Series:

Managerial accounting collection. 2151-2817

Managerial accounting collection, 2151-2817

Language:

English

Subjects (All):

Managerial accounting.

Cost accounting.

Physical Description:

1 online resource (xvi, 121 pages)

Edition:

First edition.

Place of Publication:

New York, New York (222 East 46th Street, New York, NY 10017) : Business Expert Press, 2016.

Summary:

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.

Contents:

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.

Notes:

Includes bibliographical references and index.

Title from PDF title page (viewed on March 8, 2016).

ISBN:

9781631570667

1631570668

OCLC:

944198039