Accounting for the Cost of Unused Capacity in an Economic Downturn

An overarching goal of financial accounting is to provide useful information to a company’s external stakeholders, including equity investors, potential equity investors, lenders, poten tial lenders, and others. Inventory accounting is particularly important for manufacturing companies.
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Internal Audit Function Preserved—For Now

In March, I warned readers that one of
New York State’s proposed budget bills included a provision that would have
eliminated the required internal audit function for the state’s public school districts—a provision that was part of a hard-fought public protection law enacted in 2005 after the Roslyn School District scandal.
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Management Accountants:
Doing Both … and More

Management accountants, CFO aspirants, and CFOs actually have an accountability to “do both”—as vividly described above by Cisco Senior Vice President of Strategy and Planning for Worldwide Operations Inder Sidhu—defined at its highest level as driving value preservation and value creation inside businesses of any size and any structure, anywhere in the world.
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