A Pension-Related Accounting Alter At Stone & Webster Engineering Corp.
In 1987, profits at Stone & Webster Engineering Corp. were $3.28 per share. Over the following three years, however, profits deteriorated to the thing exactly where they reached a low of $0.50 per share in 1990. In 1991, however, a turnaround appeared to take place. Revenues increased to $273.2 million in 1991 from $262 million in 1990, and earnings per share elevated from 1990's $0.50 to $1.08 in 1991. In the very first quarter of 1992, the rebound appeared to continue, as soon as earning per share inside the first quarter of 1992 have been $0.22 compared to $0.10 inside first quarter
of 1991, and first quarter revenues in 1992 have been $66.9 million compared to just $65.3 million inside very first quarter of 1991. All of the apparent good new was not, however, what it appeared to be. Inside the context of operations, Stone & Webster, rather than posting and revenue per share increase of $0.52 in 1991 ($1.08 in 1991 compared to $0.50 in 1990), truly posted a one-cent per share loss--from $0.50 in 1990 to $0.49 in 1991.
That result left a $0.53 per share attain to be explain. The explanation was that the $0.53 per share revenue attain was entirely the result of an accounting change. The accounting improve was related to the company's funding of employee pension benefits. In 1991, Stone & Webster Engineering Corp. started recognizing funds o
1. Collection of costs against jobs orders. Once batch sizes are reduced, the number of batches processed increases. Once this situation occurs, it's no longer feasible to collect prices against work orders for individual batches.
JIT is often a radically various manufacturing management philosophy that demands flexibility on a shop floor and flexibility in cost accounting practices simply because quite a few traditional features of the manufacturing method should be eliminated. The characteristics that need to be eliminated are as follows:
An Inventory Valuation Accounting Alter At Hewlett-Packard
3. Labor reporting. Under JIT, it is hard to allocate labor prices in between flow orders, because lead times are short, and work schedules are flexible.
7. The location of variance reporting. Traditional variance reporting isn't relevant under JIT, due to the fact (a) the concern is with organizational, rather than individual, efficiency, and (b) the production time is very compressed.
Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!
No comments:
Post a Comment