The Controller's Function: The Work of the Managerial Accountant -- Contents -- Preface -- Chapter 1: The Controller's Job -- Main Job Functions -- Job Description -- Auditing -- Budgeting -- Control Systems -- Cost Accounting -- Financial Analysis -- Financial Statements -- Fixed Assets -- Policies and Procedures -- Process Analysis -- Record Keeping -- Tax Preparation -- Transaction Processing -- Job Qualifications -- Organizational Structure of the Accounting Department -- Ethics -- Chapter 2: Internal Control -- Basic Elements -- Control Environment -- Accounting System -- Appraising the Control System -- Identifying the Activities, Risks, and Control Objectives -- Understanding Control Systems -- Controls to Use in Your Business -- Cash -- Investments -- Elements of Internal Accounting Control -- Levels of Controls -- Fraud -- Common Types -- Some Causes -- Management Override -- Auditing for Fraud -- Notes -- Chapter 3: Planning and the Strategic Plan -- Strategic Plan Overview -- System of Plans -- Planning Cycle -- Planning Roles -- Planning Timing and the Planning Period -- Business Mission -- Developing Long-Range Objectives -- Developing Long-Range Strategies -- Chapter 4: Long-Range Financial Plan -- Layout and Purpose -- Trends of Revenues and Profits -- Capital Investments -- Cash Flows and Financing Requirements -- Risk Analysis -- Breakdown by Business Unit/Product Line/Geography -- Financial Position -- Chapter 5: Annual Plan -- System of Plans -- Additional Budget Modeling Topics -- Annual Planning Cycle -- Role of the Controller -- Sales Planning: The Base of All Business Plans -- Steps in Developing the Near-Term Sales Plan -- Methods for Determining the Sales Forecast -- Statistical Methods -- Judgmental Methods (Nonstatistical) -- Other Methods -- Changes in the Sales Mixture -- Changes in the Sales Price.

Changes in the Cost -- Chapter 6: Sales -- Role of the Controller -- Sales Analysis -- Types of Sales Analyses Needed -- Deductions from Sales -- Sales Department Bottlenecks -- Typical Conditions Found by Sales Analyses -- Other Uses of Sales Analysis -- Sales and Gross Profit Analysis -- Sales Standards -- Illustrations of Sales Standards -- Revision of Sales Standards -- Sales Reports -- Product Pricing -- Cost Basis for Pricing -- Throughput Basis for Pricing -- Chapter 7: Distribution Expenses -- Role of the Sales Manager -- Analyzing Distribution Costs -- Analyzing by Application -- Analysis by Territory -- Analysis by Product -- Analysis by Customer -- Need for Higher Margins for Certain Groups -- Analysis by Size of Order -- Other Analysis Issues -- Setting the Distribution Budget -- Five Steps to Set Distribution Standards -- Additional Information Needed to Use Standards -- Chapter 8: Direct Materials and Labor -- Objectives -- Role of the Controller -- Types of Cost Systems -- Measuring Direct Material Costs -- Controlling Direct Material Costs -- Purchasing and Receiving -- Material Usage -- Controlling Direct Material Quantities -- Measuring Direct Labor Costs -- Controlling Direct Labor Costs -- Wage Incentive Plans -- Target Costing -- Chapter 9: Overhead -- Need for Overhead Controls -- Responsibilities of the Controller -- Account Classifications -- Fixed and Variable Costs -- Using the High-Low Method -- Graphic Determination of Fixed and Variable Costs -- Cost Allocation -- Traditional Cost Allocation -- Activity-Based Costing: An Introduction -- Developing an ABC Model -- Controlling Overhead -- Treatment of Bottleneck Overhead -- Production Reports -- Chapter 10: General and Administrative Expenses -- Functions Involved -- Accounting for and Allocating Administrative Expenses -- Responsibility Accounting -- "Unique" Expenses.

Controlling Costs -- Chapter 11: Cash and Investments -- Objectives of Cash Management -- Role of the Controller -- Cash Collections -- Acceleration of Cash Receipts -- Value Dating -- Cash Disbursements -- Investment of Short-Term Funds -- Criteria for Selecting Investments -- Investment Options -- Accounting for Records of Investment -- Reports on Cash and Investments -- Cash and Investment Controls -- Common Methods of Misappropriating Cash -- Controlling Disbursements -- Bank Reconciliations -- Petty Cash Funds -- Investments -- Chapter 12: Receivables -- Functions of the Credit Department -- Shortening the Receivables Cycle -- Reserve for Doubtful Accounts -- Receivables Fraud and Control -- Receivables Fraud -- Receivables Controls -- Chapter 13: Inventory -- Inventory Management Systems -- Turnover -- Reorder Points -- Material Requirements Planning -- Just-in-Time Systems -- Cost of Carrying Inventories -- Responsibility for Inventory -- Inventory Tracking -- Physical Inventory Procedure -- Inventory Valuation -- Inventory Valuation Methods -- Lower of Cost or Market, and Inventory Reserves -- Inventory Fraud and Controls -- Inventory Fraud -- Inventory Controls -- Chapter 14: Property, Plant, and Equipment -- Role of the Controller -- Capital Budgeting -- Establishing the Limit of the Capital Budget -- Supporting Information for Capital Expenditure Proposals -- Method of Evaluating Projects -- Payback Method -- Accountant's Method -- Discounted Cash Flow Methods -- Hurdle Rates -- Project Risk Analysis -- Inflation -- Ranking Capital Projects -- Throughput Analysis Method -- Postproject Appraisals -- Other Aspects of Fixed Assets -- Internal Control Requirements -- Plant and Equipment Records -- Plant and Equipment in Relation to Taxes -- Chapter 15: Liabilities -- Objectives -- Controls -- Current Liabilities -- Long-Term Liabilities.

All Indebtedness Items -- Credit Agreement Provisions -- Debt Capacity -- Bond Ratings -- Leverage -- Chapter 16: Equity -- Role of the Controller -- Cost of Capital -- Dividend Policy -- Long-Term Equity Planning -- Repurchasing Common Shares -- Capital Stock Records -- Chapter 17: Operational Accounting -- Create Departmental Job Descriptions -- Create a Departmental Training Program -- Clear Out Excess Documentation -- Streamline the Accounting Workflow -- Document All Major Processes -- Schedule the Department -- Correct the Underlying Causes of Errors -- Use of Best Practices -- Outsourcing Selected Accounting Functions -- Chapter 18: The Fast Close -- Different Types of Fast Close -- How to Achieve a Fast Close -- Documenting the Existing Closing Process -- Alter the Timing of Closing Activities -- Revise the Financial Statement Contents -- Optimize the Use of Journal Entries -- Centralize Accounting Activities -- Specific Improvements to Functional Areas -- Incorporate Automation into the Closing Process -- Enhanced Closing Process -- Summary -- Chapter 19: SEC Filings -- Form 8-K -- Annual 10-K and Quarterly 10-Q Reports -- Timing of Annual and Quarterly Report Filings -- Form S-1 -- Form S-3 -- Form S-8 -- Forms Requiring Payment to the SEC -- Fedwire Payments -- Chapter 20: Performance Measurements and Trends -- Performance Measurements -- Profitability Measures -- Measures of Growth -- Liquidity Measures -- Debt Measures -- Activity Measures -- Operating Measures -- Cash Flow Measures -- Other Nonfinancial Measures -- Trends -- Interrelationship of Ratios -- Just-in-Time Ratios -- Chapter 21: Financial Analysis -- Analyzing Financial Statements -- Analyzing Working Capital -- Analyzing Financing Options -- Services Profitability Analysis -- The Throughput Analysis Model -- Production Outsourcing Decision -- New Product Decision.

Chapter 22: Cost Reduction -- Types of Reports Used for Cost Reduction Analysis -- Spend Analysis Overview -- Spend Database -- Supplier Consolidation Analysis -- Parts Consolidation Analysis -- Maintenance, Repair, and Operations Item Analysis -- Spend Compliance -- Spend Analysis Reports -- Workforce Reduction Analysis -- Workforce Reduction Issues -- Workforce Reduction Alternatives -- 5S Analysis -- Check Sheets -- Error Quantification -- Fixed Cost Analysis -- Ishikawa Diagrams -- Value Stream Mapping -- Waste Analysis -- Chapter 23: Taxes -- Tax Strategy -- Tax Organization -- Role of the Tax Manager -- Tax Records -- Tax versus Book Accounting -- Sales and Use Taxes -- Proper Classification of Accounts -- Chapter 24: Selecting a Financial Information System -- Reasons to Purchase Software -- Defining Systems Requirements -- Questionnaires -- Executive Interviews -- Document Reviews -- Outside Sources -- Vendor Demonstrations -- Existing System Documentation -- Joint Sessions -- Preparing the Request for Proposal -- Cover Letter -- General Information/Proposal Guidelines -- Background Material -- Vendor Questionnaire -- Vendor Cost Summary -- System Requirements -- Distribution of the Request for Proposal -- Review of the Vendor's Completed Proposal -- Reference Calls -- Demonstration -- Site Visits -- Cost of the System -- Final Selection -- Contract Negotiations -- Postimplementation Review -- Appendix New Controller Checklist -- About the Author -- Index -- End User License Agreement.