COPYRIGHTED MATERIAL. Index

Transcription

1 Index A Absorption and variable costing methods Analyzing contribution margin, 149 Analyzing market segments, 149 Assumptions of, 154 Controlling costs, 146 Cost behavior, 153 Cost estimation approaches, 155 Defi nition of, 145 Planning production, 148 Pricing products, 147 Technical aspects of, 150 Account analysis, 72 Accounting cycle, 69 Accounting principles and concepts Accounting period concept, 68 Business entity concept, 67 Cost concept, 67 GAAP, 66 Matching concept, 67 Materiality concept, 68 Objectivity concept, 67 Revenue recognition concept, 68 Unit of measure concept, 67 Activity-based costing, 183 Appraisal costs, 8 B Balanced scorecard system Indicators, 65 Measures, 65 Purpose, 64 Bank reconciliation, 116 Beta risk, 160 Bonds, 72 Business combination, Business development life cycles Causes, 143 Defi nition of, 142 Durable goods, 144 Growth concepts, 144 Nondurable goods, 144 Business process analysis Bottleneck management, 34 Five focusing steps, 34 Theory of Constraints, 34 Workfl ow analysis, 33 Business valuation, 136 COPYRIGHTED MATERIAL

2 C Capital budgeting, 155 Capital rationing, 161 Cash controls, Cash conversion cycle model Approaches to, 123 Defi nition of, 122 Cash-basis vs. accrual-basis, 69 Celler Antimerger Act, 193 Clayton Act, 191 Common stocks, Computer viruses Diagnostic software, 249 Examples of, 249 Types of malicious code, 250 Virus infection, Concurrent engineering, 6 Connectivity hardware Backbone, 227 Bridges, 224 Brouters, 225 Collapsed backbone, 227 Concentrators, 223 Ethernet switches, 228 Gateways, 219, 226 Network adapters, 228 Network interface cards, 228 Protocol converters, 226 Repeaters, 224 Routers, 225 Consolidation, 81 Contingency planning, Contracts Classifi cation of, Defi nition of, 206 Requirements for, 207 Contribution margin, 178 Control frameworks, IT BS7799, 214 COBIT, 212 CONCT, 213 esac, 212 IFAC, 215 OECD, 214 SysTrust, 213 Controls over cash Cash account balances, 118 EDI, 121 Index 311

3 Controls over cash (continued) EFT, 121 Payables, 119 Receivables, 120 Cost-benefi t ratio, 157 Cost concepts, Cost of capital, 99, 104 Cost of common stock, 102 Cost of debt, 99 Cost of preferred stock, 100 Cost of quality, 7 Cost of retained earnings, Costing systems, Cost-volume-profi t (CVP) analysis Assumptions of, 174 BEP methods, Defi nition of, 171 Effect of sales mix and sales tax, 179 Limitations of, 175 Lowering BEP, 176 Sensitivity analysis, 177 Tradeoffs, 177 Credit derivatives Credit swaps, 113 Options, 113 Spread, 113 Total return swaps, 112 D Database technology Database considerations, 297 Data dictionary system, 298 DBMS software, 296 Data marts, 299 Data mining, 299 Data warehouse, 298 OLAP, 300 Virtual databases, 300 Dependent demand inventory systems, 36 Disaster recovery process, plans, and procedures, Distribution requirements planning (DRP), 51 Distribution systems Double order point system, 50 Periodic review system, 50 Index 312

4 Sales replacement system, 50 Single order point system, 49 E Electronic commerce (EC) EC infrastructure, 233 EC security issues, 230 EC software, 233 EDI security issues, 231 security issues, 231 Financial transaction security issues, 232 Information transaction security issues, 232 Electronic data interchange (EDI) Benefi ts of, 238 Components of, 237 Examples of, 234 Workings of, Electronic funds transfer (EFT), 229 Electronic mail Lists, 254 Policy, 254 Protocols, 255 Safeguards, 255 Threats, 255 Encryption Process, 245 Techniques, 246 Uses of, Enterprise-wide resource planning (ERP) software Advantages of, 261 Defi nition of, 260 Disadvantages of, 261 Environmental controls, 293 Ex ante data, 104 Export-import bank (U.S.), 196 Ex post data, 104 F Failure costs, 8 Federal Trade Commission Act, 192 Financial accounting, 66 Financial asset valuation Bond valuation, 134 Common stock valuation, 135 Preferred stock valuation, 135 Types of assets, 133 Index 313

5 Financial instruments Currency derivatives, 111 Currency swaps, 112 Interest-rate swaps, 112 Financial statement analysis, Financial statements Account analysis, 72 Different formats, 71 Firewalls Advantages of, 286 Data transmission, 285 Defi nition of, 285 Disadvantages of, 287 Types of, 285 Float, 117 Forecasting Regression analysis, 27 Sensitivity analysis, 28 Simulation models, 29 Time series analysis, 26 Foreign currency transactions, 88 Foreign currency translation Current/noncurrent method, 89 Current rate method, 90 Disclosure of, 92 Effects of infl ation, 91 Effects of income taxes, 91 Gains and losses, 90 Monetary/nonmonetary method, 90 Functional areas of IT operations Change and problem management, Computer operations, 239 Operating environment, 238 Separation of duties, Service-level management, 242 G Government legislation and regulation, 190 Government s monitoring of environmental issues Air and radiation, 194 Mission, 193 Pesticides, 195 Solid waste, 195 Toxic substances, 195 Water, 194 Gross margin, 178 Index 314

6 H Hedging, 117 Hidden fi nancial reporting risk Hiding debt, 114 Off-balance-sheet accounting, 114 Human resources management Bonus incentives policy, 61 Employee selection policy, 59 Equal employment opportunity policy, 59 Pay administration policy, 61 Performance appraisals policy, 60 Policy development, 58 Records retention policy, 63 Recruiting policy, 59 Safety policy, 63 Transfers and promotions policy, 60 Wage garnishments policy, 62 I Incremental cash fl ows, 159 Independent demand inventory systems, 35 Information systems security Communications link protection, 291 Control objectives, 288 Hardware-based security, 290 Logical security, 292 Security for dial-up lines, Security layers, 289 Security levels, 289 Software-based security, 291 Intangible assets, 77 International capital budgeting, 162 International laws European Union, NAFTA, 200 Other regional groups, WTO, 200 Inventory decisions ABC inventory control system, 45 Effects of infl ation, 45 EOQ assumptions, 43 How much to order, Safety stock and stockouts, 44 Sensitivity analysis and EOQ, 43 When to order, 44 Inventory distribution methods, 51 Inventory levels and investment levels, 36 Index 315

7 Inventory management EOQ cost characteristics, 38 Investment in, 37 Liquidity, 129 Optimal order quantity, Reorder point, 40 Techniques and concepts, 35 Inventory valuation Cost fl ow methods, 130 Estimation methods, 132 Types of, 129 Valuation methods, 131 ISO standards Benefi ts of, 23 Certifi cation process, 22 Types of, Issues in cost of capital, 104 IT investments Acquisition practices, 259 Approach to, 256 Critical success factors, Dimensions of, 258 IT operating systems, IT servers, 263 J Just-in-time (JIT) systems JIT inventory, 48 JIT production processing, 47 JIT purchasing, 47 JIT strategy, 46 JIT transportation, 48 K Key economic indicators Methods of measuring, Nature of, 209 Types of, L Leases, Legal evidence, 208 Logical access controls Biometrics, 296 Modems, 295 Passwords, 294 Smart cards, 295 Tokens, 294 Long-term debt, 106 Index 316

8 M Management of cash Advantages, 127 Scope of, 126 Techniques, 127 Management of current assets, 122 Management of marketable securities Criteria for selecting, 128 Reasons for holding, 128 Risks in, 129 Marginal cost of capital, Marketing pricing objectives and policies Pricing decision models, 53 Pricing objectives, 53 Market risk, 161 Marketing supply chain management Channels of distribution, 56 Managing channels of distribution, 57 Market channels, 55 Marketing intermediaries, 55 Selecting intermediaries, 56 Supply base, 54 Materials requirements planning (MRP), 49 Mergers and acquisitions Analysis of, 138 Defi nition, 137 Divestiture, 139 Holding companies, 140 Leveraged buyout, 139 Role of investment bankers, 140 Role of regulators, 141 Spin-off, 139 Types of, 137 Methods of international trade Export promotion programs, 198 Technology policies, 199 Trade agreements, 199 Methods of restricting the trade Domestic content laws, 198 Import quotas, 198 Tariffs, 197 Methods to rank investment projects Accounting rate of return, 157 Modifi ed IRR method, 158 Index 317

9 Methods to rank investment projects (continued) NPV index, 157 NPV method, 157 Payback method, 156 Profi tability index (PI), 157 Regular IRR method, 158 N Network communications ISDN, 219 LAN, 218 MAN, 217 Other, 220 SITA, 219 SWIFT, 219 VAN, 217 VPN, 216 WAN, 216 Network management Architecture, 222 Changes, 222 Interoperability, 222 Types of, 221 O Operating budgets Advantages of, 166 Benefi ts of, Defi nition of, 162 Dimensions of, 164 Limitations of, 167 Preparation of, 165 Techniques of, 166 Operational IT application systems Defi nition of, 308 Scope of, 309 P Partnerships, PDCA cycle, 12 Pensions, 76 Physical access controls, 292 Postaudit of capital projects, 159 Preferred stock, Prevention costs, 7 Privacy, 253 Profi t-volume chart, 178 Project cash fl ows and risk assessment Index 318

10 Project cash fl ows, 159 Project risk assessment, Project management techniques Guidelines, 31 Performance measures, 30 Problems in, 32 Project controls, 31 Project organization, 31 Project scheduling techniques, 32 Put and call option, 109 Q Quality assurance, 5 Quality audit, 5 Quality circles, 5 Quality control, 5 Quality councils, 5 Quality management Areas of agreement on quality, 3 4 Components of TQM, 2 Elements of TQM, 1 Quality metrics, 8 Quality models and awards Crosby model, Deming model, European quality award, 20 Juran model, Malcolm Baldrige award, 20 Quality of accounting information, 68 Quality tools, 9 12 R Relevant costs Application of, 181 Differential analysis, 180 Research and development (R&D) Costs, 78 Software for sale or lease, Responsibility accounting, 189 Robinson-Patman Act, 192 S Sherman Act, 191 Short-term credit Advantages, 125 Disadvantages, 125 Index 319

11 Simulation models, 29 Six-Sigma, 21 Software licensing Contracts, 302 Copyright laws, 302 Practices, 301 Software piracy, 301 Sources of short-term fi nancing, Standard costing Effects of variances, 188 Reporting of variances, 188 Types of standards, 184 Types of variances, Steps in the accounting cycle, 70 Stratifi cation, 12 System development and maintenance Acquisition methodology, Phases/work areas, 264 Prototyping, Work areas/phases, 264 T Target costing, 181 Taxation schemes Tax and fi nancial reporting, 206 Types of, 205 Theory of comparative advantage, 199 Tied aid practices in exports, 196 Traditional costing, 182 Transfer pricing Choices, 170 Dual pricing, 169 Effects of taxes, 170 International, 170 Management of, 169 Methods of, 168 Types of debt, 105 Types of equity, 107 Types of warehouse shipments Cost of alternative shipping, 52 Periodic shipments, 52 Trigger shipments, 52 V Variable and absorption costing methods, Voice communications Voice mail, 272 VoIP general guidelines, 270 Index 320

12 VoIP physical security controls, 271 VoIP quality of service issues, 272 VoIP-ready fi rewalls, 271 VoIP risks and opportunities, 269 VoIP training, 271 W Warehouse inventory control, 51 Web infrastructure Extranet, 307 Internet, Intranet, 306 Web management issues, 307 Weighted-average cost of capital, 103 Wheeler-Lea Act, 193 Working capital asset investment policies, 124 Working capital fi nancing policies, 125 Index 321

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