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When You've Got to Cut Costs--Now
Technology & Operations Magazine ArticleYou've been ordered to reduce overhead by 10%, 20%, or even (wince) 30%. How do you do it? First, don't expect to reach your target with a single big... -
Innovating on a Shoestring
Innovation Digital ArticleScott Anthony, president of Innosight and author of The Silver Lining, explains how to innovate when time and money are tight. -
New Framework for Corporate Debt Policy
Accounting Magazine ArticleFew, if any, articles on finance that have appeared in HBR have enjoyed the influence of the 1962 article reprinted here as a “Classic.” Gordon Donaldson’s analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative […] -
Don’t Let Cost Cutting Run Amok
Costing Digital ArticleToo many CEOs are penny-wise and pound-foolish. -
Getting Transfer Prices Right: What Bellcore Did
Accounting Magazine ArticleThe subject of transfer pricing doesn’t normally excite many people, but when your transfer pricing system is less than perfect, life gets interesting. We at Bellcore first got interested in transfer pricing in 1983. That’s the year before AT&T was broken up and Bellcore was being formed as the centralized organization supporting the seven regional […] -
How Much Should a Corporation Earn?
Financial analysis Magazine ArticleThis article presents the research findings of a leading U.S. corporation, AT&T, on a series of important economic questions and issues, with an interpretation of the material by one of the company’s top executives. The subject is corporate earnings patterns in different industries, investment trends, the relation of profits and investment to GNP, and other […] -
The Department of Mobility
Costing Magazine ArticleEmployees are constantly in motion—making sales calls or taking service trips; visiting an international office for a few days or relocating there for a few years; soaring across oceans in the corporate jet or heading across town in the company car. Typically, these activities are administered by an assortment of departments and vendors. But we […] -
Profit Priorities from Activity-Based Costing
Accounting Magazine ArticleIn recent years, companies have reduced their dependency on traditional accounting systems by developing, activity-based cost management systems. Initially, managers viewed the ABC approach as a more accurate way of calculating product costs. But ABC has emerged as a tremendously useful guide to management action that can translate directly into higher profits. Moreover, the ABC […] -
One Cost System Isn’t Enough
Accounting Magazine ArticleMany companies now recognize that their cost systems are inadequate for today’s powerful competition. Systems designed mainly to value inventory for financial and tax statements are not giving managers the accurate and timely information they need to promote operating efficiencies and measure product costs. In response, they have tried to redesign their present systems, but […] -
Animation: Deciphering Cost Variance
Finance & Accounting VideoLearn the ABCs of cost variance analysis through this simple illustration. -
You Need a New Cost System When…
Accounting Magazine ArticleBy now it’s well publicized—if not obvious—that many companies’ cost accounting systems are falling down on the job. They give managers incorrect product costing information, or they inundate managers with irrelevant cost information, or they fail to measure the things that really count. Strategies may be conceptually brilliant, but if they are based on faulty […] -
Using APV: A Better Tool for Valuing Operations
Finance and investing Magazine ArticleToday’s technology can put adjusted present value into the arsenal of every general manager. -
Fix the Handful of U.S. Hospitals Responsible for Out-of-Control Costs
Finance & Accounting Digital ArticleA small number of hospitals are responsible for nearly 80% of the excess payments for common Medicare procedures. -
To Lead, You Must Focus
Costing Magazine ArticleLeading a large, complex organization like the U.S. Navy, which is interdependent with similar entities, calls for a certain approach. You begin with a narrow focus on your organization’s unique strength and role. For the navy, that is presence. U.S. naval forces—sailors and Marines—are constantly mobilized, don’t need an inch of foreign soil, and can […] -
A Case for Historical Costs
Costing Magazine ArticleDo we really need to switch to replacement-cost accounting to understand how companies have performed? -
To Control Health Care Costs, U.S. Employers Should Form Purchasing Alliances
Finance & Accounting Digital ArticleA hot labor market is limiting employers' ability to shift more costs to their workers. -
Excess Management Is Costing the U.S. $3 Trillion Per Year
Finance & Accounting Digital ArticleHere's the math. -
You Can Prevent Layoffs
Costing Digital ArticleWhen you strip away the fancy jargon, a successful business fundamentally makes more money than it spends. While managers can pull any number of levers to accomplish this, the one they most often choose reads: “Reduce Costs!” And perhaps the most common way they cut costs is to eliminate jobs. This is why we are […] -
Why Not Leverage Your Company to the Hilt?
Costing Magazine ArticleEasy credit means hard choices. The old consensus between lenders and corporate borrowers about what constitutes a prudent level of financial reserves has broken down. Today’s junk-bond financiers, merchant bankers, and “credit corporations” offer far more leverage than businesses have historically been comfortable with, and these venturesome lenders pose a difficult problem for management. Managers […] -
4 CEOs Who Are Making Frugal Innovation Work
Costing Digital ArticleCreating high-quality products that are affordable, simple, and sustainable.
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Ball: EVA Driving the World's Leading Can Manufacturer (B)
Management Case Study5.00View Details Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired... -
Identify the Industries--1996
Finance & Accounting Case Study8.95View Details Common-size balance sheets and financial ratios are given for thirteen companies. Students must identify which company is in which of thirteen industries.... -
Ball: EVA Driving the World's Leading Can Manufacturer (C)
Management Case Study5.00View Details Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired... -
Elkay Plumbing Products Division
Finance & Accounting Case Study8.95View Details The vice president of sales learns that the most profitable 1% of the division's customers generate 100% of profits, and that two of the division's largest... -
APLO: Optimal Supply of Street Lights
Leadership & Managing People Case Study8.95View Details APLO was a reputable supplier of LED lighting systems for diverse countries from Taiwan to the United Kingdom. In 2015, APLO signed a contract to supply... -
Hewlett Packard: Performance Measurement in the Supply Chain, Condensed Version
Leadership & Managing People Case Study8.95View Details In a maturing market, HPs attention moved from Return on Sales to Return on Net Assets. Mismatches between demand and supply, aggrevated by a long supply... -
Birch Paper Co.
Finance & Accounting Case Study6.95View Details Involves transfer pricing among three divisions of a company. -
Investindustrial Exits Ducati
Finance & Accounting Case Study8.95View Details In early 2012, Investindustrial, a European private equity group, publicly announced their intention to sell their 76.7% stake in Ducati Motor Holding... -
Philips Singapore: Creating Value Through Human Resource Shared Services Centre
Leadership & Managing People Case Study8.95View Details In 2003, Philips Electronics Private Limited, Singapore launched Philips People Services (PPS), a shared services centre to provide various standardised... -
Kidder, Peabody & Co.: Creating Elusive Profits
Finance & Accounting Case Study8.95View Details On April 17, 1994, Kidder, Peabody & Co. announced a $350 million charge against earnings resulting from the discovery of false trading profits. That... -
Adventurous Computer Games, Inc. (Abridged)
Finance & Accounting Case Study8.95View Details A new company that manufactures computer games must begin to capitalize computer software development costs. Issues that must be addressed include the... -
Exercises on Tradeoffs and Conflicting Objectives
Strategy & Execution Case Study8.95View Details Presents two methodologies for making decisions in the face of conflicting objectives, pricing out, and additive scoring systems. This material is followed... -
Spreadsheets or Michelangelo: Going Back to School
Finance & Accounting Case Study8.95View Details A financially struggling administrative assistant needs information to help her decide whether she can return to school. -
James Woolsey and the CIA: The Aldrich Ames Spy Case (Sequel)
Leadership & Managing People Case Study5.00View Details When Washington attorney and longtime Capital Hill staff member James Woolsey became director of the Central Intelligence Agency in 1993, he inherited... -
Partners In Health: Costing Primary Care in Haiti
Finance & Accounting Case Study8.95View Details Partners in Health, a global NGO focused on delivering health care to residents of rural underserved communities, conducts a project on the cost of primary... -
Note on the Theory of Optimal Capital Structure
Finance & Accounting Case Study8.95View Details Examines the interrelationship between the maximization of the share value of a firm's common stock and the minimization of the firm's weighted average... -
Petro Refinery LLC: Linear Programming Exercise
Technology & Operations Case Study8.95View Details Petro Refinery LLC, a crude oil refinery, faces an issue common in many production and service industries: finding the optimal product mix or input mix.... -
Grand River University Water Buffalos: Activity-Based Costing of University Sports
Finance & Accounting Case Study8.95View Details On April 30, 2018, the athletic director of Grand River University was drafting a plan for his department to be reviewed by the school's board of trustees.... -
Depreciation at Delta and Pan Am
Finance & Accounting Case Study8.95View Details Depreciation policies of Delta Air Lines and Pan Am Corp. are compared and contrasted against a summary of operating data from each airline. Questions...
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Making Smart Investments: A Beginner’s Guide
Costing AdviceReduce the risk factor, increase the reward factor, and generate meaningful returns. -
When You've Got to Cut Costs--Now
Technology & Operations Magazine ArticleYou've been ordered to reduce overhead by 10%, 20%, or even (wince) 30%. How do you do it? First, don't expect to reach your target with a single big... -
Innovating on a Shoestring
Innovation Digital ArticleScott Anthony, president of Innosight and author of The Silver Lining, explains how to innovate when time and money are tight. -
New Framework for Corporate Debt Policy
Accounting Magazine ArticleFew, if any, articles on finance that have appeared in HBR have enjoyed the influence of the 1962 article reprinted here as a “Classic.” Gordon Donaldson’s analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative […] -
Don’t Let Cost Cutting Run Amok
Costing Digital ArticleToo many CEOs are penny-wise and pound-foolish. -
Getting Transfer Prices Right: What Bellcore Did
Accounting Magazine ArticleThe subject of transfer pricing doesn’t normally excite many people, but when your transfer pricing system is less than perfect, life gets interesting. We at Bellcore first got interested in transfer pricing in 1983. That’s the year before AT&T was broken up and Bellcore was being formed as the centralized organization supporting the seven regional […] -
Ball: EVA Driving the World's Leading Can Manufacturer (B)
Management Case Study5.00View Details Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired... -
How Much Should a Corporation Earn?
Financial analysis Magazine ArticleThis article presents the research findings of a leading U.S. corporation, AT&T, on a series of important economic questions and issues, with an interpretation of the material by one of the company’s top executives. The subject is corporate earnings patterns in different industries, investment trends, the relation of profits and investment to GNP, and other […] -
The Department of Mobility
Costing Magazine ArticleEmployees are constantly in motion—making sales calls or taking service trips; visiting an international office for a few days or relocating there for a few years; soaring across oceans in the corporate jet or heading across town in the company car. Typically, these activities are administered by an assortment of departments and vendors. But we […] -
Profit Priorities from Activity-Based Costing
Accounting Magazine ArticleIn recent years, companies have reduced their dependency on traditional accounting systems by developing, activity-based cost management systems. Initially, managers viewed the ABC approach as a more accurate way of calculating product costs. But ABC has emerged as a tremendously useful guide to management action that can translate directly into higher profits. Moreover, the ABC […]