Outlines Isolate Summary Data

This article demonstrates the advantages of using Excel’s outline feature to summarize data without having to hide the detail data.

The Battle for the Soul of Capitalism

Despite its inflated title, this volume is a worthy jeremiad against corporate excess, especially the kind hastened by the mutual fund industry that Bogle, former CEO of low-cost Vanguard, knows well. Among the problems: inflated executive compensation and creative accounting that allows companies to claim profits even when they’re in the red. Mutual fund companies, Bogle charges, care more about short-term results than long-term value, … [ Read more ]

When Less Is More

ABC/M models often fail to meet objectives because they include too much information. Improve your model’s efficiency and sustainability by limiting it to crucial data.

Why Budget Games Don’t Add Up

Managers can be adept at playing budget games, such as setting goals easily surpassed to win a bonus. The problem: Such fictions lead to far-reaching consequences in your company.

After the Bubble Burst: A Groundbreaking Analysis

We are still seeking to understand the astonishing rise and then sharp fall of U.S. stock prices in 2000. The paper “U.S Public and Private Venture Capital Markets, 1998-2001,” describes what happened in a new light, by looking through the lens of underlying company financial fundamentals. The research reveals some important insights. For instance, contrary to popular belief, there was no single “bubble point” at … [ Read more ]

Still Thinking Of Doing An IPO?

This article lays out the formal IPO procedural process and discusses the purpose and requirements for the “roadshow,” a grueling two to three week marathon of presentations to investor groups about your company. The approximate cost is also be discussed, as well as the pros and cons of being a public company. Finally, a list of useful web sites is provided should you want to … [ Read more ]

Spend or Cut?

Nathaniel Mass has devised a metric to help finance executives make more-informed spend-or-cut decisions. Known as the relative value of growth (or RVG), the metric compares the amount of shareholder value a company creates through revenue growth with that generated by margin improvement. In theory, this helps managers align their decisions more closely with investor expectations and create more shareholder value.

Ponzi’s Scheme: The True Story of a Financial Legend

Before Charles Ponzi (1882-1949) sailed from Italy to the shores of America in 1903, his father assured him that the streets were really paved with gold – and that Ponzi would be able to get a piece. As journalist Zuckoff observes in this engaging and fast-paced biography, Ponzi learned as soon as he disembarked that though the streets were often cobblestone, he could still make … [ Read more ]

Economy.com’s FreeLunch

Economy.com’s FreeLunch provides you with FREE access to over 100,000 economic, financial, and demographic data series. Topics include:
– Consumer Markets
– Demographics
– Flow of Funds
– GDP
– Government
– Income & Earnings
– Industry
– International Trade
– Labor markets
– Money, Credit & Interest rates
– Prices
– Real Estate
– Society
– Stock Markets & Foreign Currency

Activity-Based Power App

Using ABM to set future costs can be the most valuable application of your data. The process doesn’t have to be complex and time-consuming. Some basic forecasting guidelines can increase profitability – without alienating customers.

A GAAP of Their Own

Private companies seeking a wholesale exemption from FASB’s accounting rules are likely to be disappointed.

Warren Buffet Speaks Out on Derivatives

A reprint of pages 13 to 15 of the 2002 Berkshire Hathaway annual report in which Warren Buffet discusses his thoughts on derivatives.

Ten Myths that Create Barriers to the Implementation of Activity-Based Cost Systems

This article examines ten myths of product costing identified from the comments of managers and academics. Each myth was heard several times from different sources. Each myth also appeared to have a kernel of truth, but had been generalized to apply to all activity-based systems. This article describes each of these ten myths and identifies the conditions under which they are true and those under … [ Read more ]

Will high-tech CFOs adapt to slower growth?

Financial officers in the high-tech sector should learn to balance six roles to help guide companies into a more mature market.

Valuing Intellectual Property

Early stage firms rely on their intellectual assets to justify additional investments-but the problem often arises in how to specifically value those assets. This article explores several methods for valuing IP, provides comment on how to select appropriate methods, and offers advice for those who may seek to maximize the value of their portfolio.

Core Finance Trends in the Top MBA Programs in 2005

This paper presents and analyzes a survey taken of core (required) finance courses in the curricula of the highest-reputation MBA programs in the school year 2004-2005. Five of the nineteen schools responding have increased hours spent in the finance core substantially, compared to results of our earlier survey in 2001. We received mixed signals on the trends or tendencies that we were able to … [ Read more ]

Clearing the Capacity Cobwebs

Measuring capacity has never been simple. But combining activity-based costing techniques with a model designed to assemble data in a process format can lead to powerful metrics.

Intangibles: Management, Measurement, and Reporting

This book is the first comprehensive, scientifically based study of the nature and impact of intangibles. Weaving case studies and real-world examples with contemporary business theory, Baruch Lev
* establishes an economic framework to analyze managerial and investment issues concerning intangibles;
* surveys the impact of intangibles on corporate performance and market values, including management difficulties, risk, questions of property rights, marketability, and cost … [ Read more ]

Tad Leahy

ABC/M can’t tell you in which direction to point your company, but it can show you where waste exists and where more resources are required. Those facts are the basis for developing strategic plans.