Book descriptionThis book introduces capacity management, describes cash flow dynamics, and offers ideas about how to manage both
Business leaders rely on accounting data such as profit and calculated costs as a guide to whether they are making money. Should they? Accounting was designed to report financial performance not model cash flow. Accruals can disconnect cash flow from the timing and extent to which it occurs. Statements of cash flow do not provide insight into what was bought and how efficiently it was used. Costs and profits are not absolute, they change based on the model you use to calculate them.
To manage cash, you must manage what you buy and how effectively you use it. The largest expenditure for most companies is capacity; space, labor, materials, equipment, and technology. Unless you model and manage capacity effectively, you will not achieve the cash flow results you seek. This book introduces capacity management, describes cash flow dynamics, and offers ideas about how to manage both. After reading it, you be able to see, understand, and manage cash flow as never before.
Table of contents
- Half Title Page
- Title Page
- Copyright Page
- Chapter 1 Blue Pill or Red Pill?
- Chapter 2 The Foundation
- Chapter 3 Profit has Little to do with Making Money
- Chapter 4 Revenue Recognition
- Chapter 5 The Practice of Costing
- Chapter 6 Cost Definitions
- Chapter 7 Understanding Efficiency
- Chapter 8 Inventory
- Chapter 9 Depreciation
- Chapter 10 Revisiting the Objective—Cash and Decision-Making
- Chapter 11 Transactions and Capacity
- Chapter 12 Input Capacity
- Chapter 13 Output Capacity
- Chapter 14 Understanding the Basics of Capacity Dynamics
- Chapter 15 Understanding the Cost Dynamics of Capacity
- Chapter 16 Do You Need Accounting?
- Chapter 17 Getting Managerial Information from Capacity
- Chapter 18 Explicit Cost Dynamics Revisited
- Chapter 19 What is Explicit Cost Dynamics?
- Chapter 20 Worth
- Appendix A
- Appendix B
- Title: Lies, Damned Lies, and Cost Accounting
- Release date: February 2016
- Publisher(s): Business Expert Press
- ISBN: 9781631570667
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