The cardinal difference in cash management
Article Abstract:
Cardinal Industries makes modular building products. Cardinal is primarily a manufacturer, but is also a vertically integrated company that works in construction, mortgage finance, real estate development, and property management. Cardinal's cash management system did not keep pace with the company's rapid growth. Each of the company's 20 divisions kept a bank account independent of the other divisions. A new treasurer initiated a program to centralize cash management services. The objectives of the program were to centralize the corporation's borrowing function, determine overall daily cash position, identify divisions that were net providers or users of cash, and utilize cash balances effectively.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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Does your transfer price make cents?
Article Abstract:
Transfer price policies must be established on the basis of the markets in which they are sold. Products that have an external market should be priced at variable cost plus 10%. Products that are unique and have no current external market should not be priced this way because the variable cost plus 10% method contains disincentives that are unprofitable.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
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