What Every Engineer Should Know about Accounting and Finance  book cover
1st Edition

What Every Engineer Should Know about Accounting and Finance

Edited By

Shim




  • This format cannot be shipped to your selected country.
ISBN 9780824792718
Published October 20, 1994 by CRC Press
256 Pages

FREE Standard Shipping
N/A

Prices & shipping based on shipping country


Preview

Book Description

Presents the fundamental finance and accounting processes, methods, strategies and terminology necessary for engineers and engineering managers to interpret financial data properly - examining topics such as cost and break-even analysis, the time value of money, financial ratios and discounted cash flow techniques. The information is designed to enable engineers and project managers to prepare, appraise, evaluate and approve financial plans to accomplish specific departmental and company objectives.

Table of Contents

Preface

Introduction

Accounting

Important Accounting and Finance Concepts

Basic Forms of Business Organization

Topics Covered in This Book

Understanding the Financial Statements

The Income Statement and Balance Sheet

The Statement of Cash Flows

Notes to Financial Statements

Conclusions

Recording Financial Information and Accounting Conventions

Double-Entry and the Accounting Equation

Types of Depreciation Methods

Conclusion

Analyzing Financial Statements

What and Why of Financial Statement Analysis

Horizontal and Vertical Analysis

Working with Financial Ratios

Is Ratio Analysis a Panacea?

Conclusion

Cost Concepts, Cost Behavior, and Cost Accounting

Cost Classification

Income Statements and Balance Sheets—Manufacturer

Analysis of Cost Behavior and Flexible Budgeting

The High-Low Method

Flexible Budgeting

Accumulation of Costs and Cost Accounting

Job Order Costing and Process Costing Compared

Job Order Costing

Process Costing

Conclusion

Budgeting for Profit Planning

Types of Budgets

Illustration

A Short-Cut Approach to Formulating the Budget

Zero-Base Budgeting

Conclusion

Cost Volume-Profit Analysis and Leverage

Questions Answered by CVP Analysis

Contribution Margin Concepts

Are You Breaking Even?

Graphical Approach in a Spreadsheet Format

Determination of Target Income Volume

Cash Break-Even Point

Impact of Income Taxes

Margin of Safety

Some Applications of CVP Analysis and What-If Analysis

Sales Mix Analysis

Cost-Volume-Revenue Analysis and Non-Profit Organizations

Assumptions Underlying Break-Even and CVP Analysis

Leverage

Conclusion

Responsibility Accounting and Cost Control Through Standard Costs

Responsibility Accounting and Responsibility Center

Standard Costs and Variance Analysis

General Model for Variance Analysis

Flexible Budgets and Performance Reports

Conclusion

Improving Divisional Performance

Rate of Return on Investment (ROI)

The Breakdown of ROI—Dupont Formula

Residual Income (RI)

Investment Decisions Under ROI and RI

Transfer Pricing

Conclusion

Relevant Costing in Nonroutine Decisions

Relevant Costs Defined

Types of Decisions

Utilizations of Scarce Resources

Conclusion

Applying the Time Value of Money

How Do You Calculate Future Values—How Many Grows

What Is Present Value—How Much Is the Money Worth Now?

What Are the Applications of Future Values and Present Values?

Conclusion

Evaluating Capital Expenditure Projects

What Are the Types of Investment Projects?

What Are the Features of Investment Projects?

How Do You Measure Investment Worth?

How to Select the Best Mix of Projects with a Limited Budget

How to Handle Mutually Exclusive Investments

Lease-Purchase Decision

How Do Income Taxes Affect Investment Decisions?

How Does MACRS Affect Investment Decisions?

What to Know About the Cost of Capital

Conclusion

How Taxes Affect Business Decisions Loc T. Nguyen

The Corporate Income Tax

Tax Strategies and Planning

Conclusion

Glossary

Appendix: Interest Tables

Index

...
View More