Controllership: The Work of the Managerial Accountant

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; and, 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.

Table of Contents:
Note to the Reader: Sections not in the main bound volume are indicated by "(New)" after the title. Material from the Seventh Edition that has been updated for this supplement is indicated by "(Revised)" after the title. Material new to or modified in this supplement is indicated by an asterisk () in the left margin in the contents and throughout the supplement.Preface.PART 1 THE BROAD MANAGEMENT ASPECTS OF CONTROLLERSHIP.1 Accounting in the Corporation.1.5 Impact of Ethics on the Accounting Role.8 Internal Audit Function.8.3A Audit Committee Charter (New).8.4 Role of the Audit Committee.PART 2 THE PLANNING FUNCTION OF CONTROLLERSHIP.14 Profit Planning: Annual Plan.14.5A Problems with the Annual Plan (New). 14.21A Linking the Bonus Plan to the Budget (New).PART 3 PLANNING AND CONTROLLING OPERATIONS.18 Planning and Control of Sales. 18.6 Sales Analysis.19 Planning and Control of Marketing Expenses.19.3 Overview of Marketing Activities (Revised).22 Planning and Control of Research and Development Expenses. 22.12 Establishing the R&D Operating Budgets. 22.15 Effectiveness of R&D Effort.23 Financial Planning and Control in a Service Company. 23.5 Cost Accounting in a Service Organization.24 Planning and Control of General and Administrative Expenses. 24.4A Spend Management Systems (New).25 Payroll.25.12 Improving the Payroll Process (New). 25.13 Payroll Measurements (New).PART 4 PLANNING AND CONTROL OF THE BALANCE SHEET.26 Planning and Control of Cash and Short-Term Investments. 26.5 Cash Collections. 26.7 Internal Control.26.10A Variations in Cash Requirements by Industry (New).27 Planning and Control of Receivables.27.1 Introduction (Revised).27.2 Credit Policies, Procedures, and Systems (New).27.2A Collection Policies, Procedures, and Systems (New). 27.2B Use Credit Prescreening To Reduce Marketing Costs (New). 27.3A Customer Invoicing Topics (New). 27.4 Collections Task. 27.4A Selling The Bankruptcy Creditor Claim (New). 27.6A Create A Bad Debt Forecast (New).28 Planning and Control of Inventories.28.1 Introduction (Revised).28.2A Inventory Purchasing (New).28.2B Inventory Receiving and Shipping (New).28.2C Inventory Storage (New).28.2D Inventory Picking (New).28.2E Production Issues Impacting Inventory (New).28.2F Inventory Transactions (New).28.2G Inventory Quantity Management (New).28.2H Warehouse Layout (New) . 28.8A Donate Excess Inventory (New). 28.8B Further Review of Consignment Inventory Issues (New).PART 5 FINANCIAL AND RELATED REPORTS.31 Planning and Control of Plant and Equipment or Capital Assets. 31.10A Cash Flow Modeling Issues (New). 31.16A Impact of Constraint Analysis (New). 31.17A Using Expected Commercial Value for Project Ranking (New). 31.17B Problems With the Capital Budget Approval Process (New).32 Management of Liabilities. 32.4A Management of Accounts Payable (New).35 Reports to Shareholders. 35.5 Report of Management's Responsibilities. 35.8A Issue Investor Podcasts (New).36 Securities and Exchange Commission.36.7A Implications of the Sarbanes-Oxley Act (New).PART 6 COMPUTER SYSTEMS AND RELATED TECHNOLOGY.39A Leading Practices in Testing Highly Configurable Software Packages (New).39A.1 Introduction: Why Test Off-the-Shelf Software Packages?39A.2 Software Testing: How Much Is Enough?39A.3 Testing Methodologies: What Should Be Tested, and How?39A.4 Testing Leading Practices.39A.5 Conclusion.41A Maintaining and Upgrading ERP Financial Systems (New).41A.1 Overview.41A.2 Current State.41A.3 Key Strategies to Minimize Cost.41A.4 Conclusion.41B Impact of Enterprise Applications on Finance (New).41B.1 How do these Deployments Affect Me?41B.2 Pitfalls.41B.3 What Leads to an Increased Risk Profile?41B.4 What Can You Do?41B.5 Conclusion.51A Leveraging Business Process Management Technologies for Sarbanes-Oxley Section 404 Compliance (New) .51A.1 Introduction.51A.2 Essential Features of a Comprehensive BPM Solution.51A.3 Path to Compliance.51A.4 Leveraging Investments in BPM Beyond Sarbanes-Oxley.51A.5 Conclusion.PART 7 SOME ADMINISTRATIVE AND SPECIAL ASPECTS OF THE CONTROLLER'S DEPARTMENT.52 Financial Planning and Analysis for Acquisitions, Mergers, and Divestments.52.8 Evaluating the Prospect: In-Depth Analysis. 52.8A Complexity Analysis (New).52.11 Valuation of an Acquisition.52.19 Mistakes by Management.52A The Missing Piece of the Merger and Acquisition Puzzle (New).52A.1 Introduction.52A.2 What Can Be Done to Address These Issues?52A.3 Conclusion.52B Walking the Merger and Acquisition Tightrope-With a Safety Net (New).52B.1 Introduction.52B.2 What Is M&A Capability Development and How Can It Help?52B.3 Conclusion. 52C The Role of ERP Systems in Mergers, Acquisitions, and Divestitures (New).52C.1 Overview.52C.2 Top Three Separation Activities.52C.3 Merger, Acquisition, and Divestiture-Specific ERP Considerations.52C.4 Conclusion. 52D Achieving Integration Value Through Customer and Market Focus (New).52D.1 Introduction.52D.2 Eight Tips for Successful Mergers.52D.3 Conclusion.55 Accounting Best Practices. 55.2 Sixty-Six Best Practices.56 Reporting Period and How to Close It.56.6 How to Achieve a Fast Close (Revised).56.6A Summary (New).59 Records Management.59.2A Need for Tighter Control Over Records Management (New). 59.6 Contract Management Systems (New). 59.7 Using RFID for Accounting Record Keeping (New).62 Risk Management.62.4 Trends In Insurance Coverage.62.6A Evaluating the Health of an Insurance Carrier (New).62.8A Risk Management Planning (New).Index.

About the Author :
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.