Who is outsourcing and why?
Article Abstract:
Majority of companies outsource their accounting and finance functions to reduce operational costs. According to a survey conducted in Mar 1997, companies outsource their accounting functions, payroll, taxes and benefits administration with CFOs and controllers making most of the outsourcing decision. The most common reasons cited by companies for outsourcing are to achieve cost savings, lower product costs, reduce the need for more capital investment, focus on core competencies and improve the quality of service. On the other hand, companies that resort to outsourcing are concerned with a decline in quality of service when contracting an outside provider as well as that provider's lack of knowledge about the company's business. Majority of companies, however, are either neutral or very satisfied with their outsourcing contracts and providers.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1998
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ABC: a pilot approach
Article Abstract:
Industrial products manufacturer Lord Corp. decided to adopt activity-based costing (ABC) to bring its accounting department up to the standards of its manufacturing operations. Management realized that manufacturing was on its way to achieving world-class status, but the accounting department's reporting system was being left behind. The company's ABC pilot project revealed that a cost report was not necessarily accurate just because it was produced by a computer. Specifically, Lord Corp.'s accounting department found that material overhead cost is not driven by the cost of a part, but primarily by inspection. The accounting department therefore emphasized the need to strengthen the company's certified supplier program to be able to minimize inspection activities.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1995
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