9780471794820

This 2007 Cumulative Supplement contains the following new chapters/updates: Chapter 52C: The Role of ERP Systems in Mergers, Acquisitions, and Divestitures. This chapter delves into the role of ERP systems in mergers, acquisitions, and divestitures. Chapter 52D: Achieving Integration Value through Customer and Market Focus. This chapter shows how to increase the odds of M&A success through an enhanced focus on customers and markets served. A new section was added to Chapter 23, outlining how to conduct profitability analysis for services. This includes a full analysis of the measurements to be used, as well as the impact of the number of billable days on the reported level of profitability per month. In Chapter 31, which addresses capital budgeting, we have added several new topics, including the impact of constraint analysis on the approval of expenditures, how to use Expected Commercial Value for project rankings, and problems with the traditional capital budgeting system. There are several additions to Chapter 32 related to the management of accounts payable. These include the use of a payment factory, how to clean up the vendor master file, how to make payments for goods that were drop shipped, and methods to use for the automation of the W-9 form.

Janice M. Roehl-Anderson, MBA, is a principal with Deloitte Consulting LLP, with over 20 years of consulting experience. She specializes in information systems security; financial and cost accounting system analysis, design, selection, and implementation; long-range information systems planning; and information management reviews. She was also a principal with Ernst & Young. She received her MBA in business at the University of Southern California and a BA in business from the University of Washington. Jan has successfully completed the CPA exam and has co-authored over 10 books, including The Controller’s Function: The Work of the Managerial Accountant (Wiley).

Steven M. Bragg, CPA, CMA, CIA, CPIM, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young and auditor at Deloitte. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a bachelor’s degree in economics from the University of Maine. He has been the two-time president of the 10,000-member Colorado Mountain Club, and is an avid alpine skier, mountain biker, and rescue diver.

Preface

xiii

PART 1 THE BROAD MANAGEMENT ASPECTS OF CONTROLLERSHIP

1 Accounting in the Corporation

3

(2)

1.5 Impact of Ethics on the Accounting Role

3

(2)

8 Internal Audit Function

5

(6)

8.3A Audit Committee Charter (New)

5

(1)

8.4 Role of the Audit Committee

6

(5)

PART 2 THE PLANNING FUNCTION OF CONTROLLERSHIP

14 Profit Planning: Annual Plan

11

(6)

14.5A Problems with the Annual Plan (New)

11

(1)

14.21A Linking the Bonus Plan to the Budget (New)

12

(5)

PART 3 PLANNING AND CONTROLLING OPERATIONS

18 Planning and Control of Sales

18.6 Sales Analysis

17

(3)

19 Planning and Control of Marketing Expenses

20

(3)

19.3 Overview of Marketing Activities (Revised)

20

(3)

22 Planning and Control of Research and Development Expenses

23

(3)

22.12 Establishing the R&D Operating Budgets

23

(1)

22.15 Effectiveness of R&D Effort

24

(2)

23 Financial Planning and Control in a Service Company

26

(5)

23.5 Cost Accounting in a Service Organization

26

(5)

24 Planning and Control of General and Administrative Expenses

31

(2)

24.4A Spend Management Systems (New)

31

(2)

25 Payroll

33

(12)

25.12 Improving the Payroll Process (New)

33

(7)

25.13 Payroll Measurements (New)

40

(5)

PART 4 PLANNING AND CONTROL OF THE BALANCE SHEET

26 Planning and Control of Cash and Short-Term Investments

45

(2)

26.5 Cash Collections

45

(1)

26.7 Internal Control

46

(1)

26.10A Variations in Cash Requirements by Industry (New)

47

(2)

27 Planning and Control of Receivables

49

(39)

27.1 Introduction (Revised)

49

(1)

27.2 Credit Policies, Procedures, and Systems (New)

50

(18)

27.2A Collection Policies, Procedures, and Systems (New)

68

(11)

27.2B Use Credit Prescreening To Reduce Marketing Costs (New)

79

(1)

27.3A Customer Invoicing Topics (New)

79

(4)

27.4 Collections Task

83

(2)

27.4A Selling The Bankruptcy Creditor Claim (New)

85

(1)

27.6A Create A Bad Debt Forecast (New)

86

(2)

28 Planning and Control of Inventories

88

(25)

28.1 Introduction (Revised)

88

(1)

28.2A Inventory Purchasing (New)

89

(2)

28.2B Inventory Receiving and Shipping (New)

91

(3)

28.2C Inventory Storage (New)

94

(3)

28.2D Inventory Picking (New)

97

(2)

28.2E Production Issues Impacting Inventory (New)

99

(3)

28.2F Inventory Transactions (New)

102

(1)

28.2G Inventory Quantity Management (New)

103

(3)

28.2H Warehouse Layout (New)

106

(3)

28.8A Donate Excess Inventory (New)

109

(1)

28.8B Further Review of Consignment Inventory Issues (New)

110

(3)

PART 5 FINANCIAL AND RELATED REPORTS

31 Planning and Control of Plant and Equipment or Capital Assets

113

(6)

31.10A Cash Flow Modeling Issues (New)

113

(1)

31.16A Impact of Constraint Analysis (New)

114

(1)

31.17A Using Expected Commercial Value for Project Ranking (New)

115

(2)

31.17B Problems With the Capital Budget Approval Process (New)

117

(2)

32 Management of Liabilities

119

(6)

32.4A Management of Accounts Payable (New)

119

(6)

35 Reports to Shareholders

125

(2)

35.5 Report of Management's Responsibilities

125

(1)

35.8A Issue Investor Podcasts (New)

126

(1)

36 Securities and Exchange Commission

127

(6)

36.7A Implications of the Sarbanes-Oxley Act (New)

127

(6)

PART 6 COMPUTER SYSTEMS AND RELATED TECHNOLOGY

39A Leading Practices in Testing Highly Configurable Software Packages (New)

133

(6)

39A.1 Introduction: Why Test Off-the-Shelf Software Packages?

133

(1)

39A.2 Software Testing: How Much Is Enough?

134

(1)

39A.3 Testing Methodologies: What Should Be Tested, and How?

134

(2)

39A.4 Testing Leading Practices

136

(1)

39A.5 Conclusion

137

(2)

41A Maintaining and Upgrading ERP Financial Systems (New)

139

(4)

41A.1 Overview

139

(1)

41A.2 Current State

139

(1)

41A.3 Key Strategies to Minimize Cost

140

(2)

41A.4 Conclusion

142

(1)

41 B Impact of Enterprise Applications on Finance (New)

143

(10)

41B.1 How do these Deployments Affect Me?

143

(2)

41B.2 Pitfalls

145

(2)

41B.3 What Leads to an Increased Risk Profile?

147

(3)

41B.4 What Can You Do?

150

(2)

41B.5 Conclusion

152

(1)

51A Leveraging Business Process Management Technologies for Sarbanes-Oxley Section 404 Compliance (New)

153

(6)

51A.1 Introduction

153

(1)

51A.2 Essential Features of a Comprehensive BPM Solution

154

(1)

51A.3 Path to Compliance

155

(1)

51A.4 Leveraging Investments in BPM Beyond Sarbanes-Oxley

155

(1)

51A.5 Conclusion

156

(3)

PART 7 SOME ADMINISTRATIVE AND SPECIAL ASPECTS OF THE CONTROLLER'S DEPARTMENT

52 Financial Planning and Analysis for Acquisitions, Mergers, and Divestments

159

(6)

52.8 Evaluating the Prospect: In-Depth Analysis

159

(1)

52.8A Complexity Analysis (New)

160

(1)

52.11 Valuation of an Acquisition

161

(2)

52.19 Mistakes by Management

163

(2)

52A The Missing Piece of the Merger and Acquisition Puzzle (New)

165

(5)

52A.1 Introduction

165

(1)

52A.2 What Can Be Done to Address These Issues?

166

(3)

52A.3 Conclusion

169

(1)

52B Walking the Merger and Acquisition Tightrope—With a Safety Net (New)

170

(5)

52B.1 Introduction

170

(1)

52B.2 What Is M&A Capability Development and How Can It Help?

171

(2)

52B.3 Conclusion

173

(2)

52C The Role of ERP Systems in Mergers, Acquisitions, and Divestitures (New)

175

(5)

52C.1 Overview

175

(1)

52C.2 Top Three Separation Activities

176

(1)

52C.3 Merger, Acquisition, and Divestiture-Specific ERP Considerations

177

(2)

52C.4 Conclusion

179

(1)

52D Achieving Integration Value Through Customer and Market Focus (New)

180

(6)

52D.1 Introduction

180

(1)

52D.2 Eight Tips for Successful Mergers

181

(4)

52D.3 Conclusion

185

(1)

55 Accounting Best Practices

186

(1)

55.2 Sixty-Six Best Practices

186

(1)

56 Reporting Period and How to Close It

187

(16)

56.6 How to Achieve a Fast Close (Revised)

187

(14)

56.6A Summary (New)

201

(2)

59 Records Management

203

(3)

59.2A Need for Tighter Control Over Records Management (New)

203

(1)

59.6 Contract Management Systems (New)

204

(1)

59.7 Using RFID for Accounting Record Keeping (New)

205

(1)

62 Risk Management

206

(7)

62.4 Trends In Insurance Coverage

206

(1)

62.6A Evaluating the Health of an Insurance Carrier (New)

207

(2)

62.8A Risk Management Planning (New)

209

(4)

Index

213

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

Amazon no longer offers textbook rentals. We do!

Amazon no longer offers textbook rentals. We do!

We're the #1 textbook rental company. Let us show you why.

Controllership: The Work of the Managerial Accountant, 2007 Cumulative Supplement, 7th Edition

0471794821

Summary

Author Biography

Table of Contents

Supplemental Materials

Rewards Program