What Every Engineer Should Know about Accounting and FinancePresents the fundamental finance and accounting processes, methods, strategies and terminology necessary for engineers and engineering managers to interpret financial data properly - examining topics such as cost and break-even analysis, the time value of money, financial ratios and discounted cash flow techniques. The information is designed to enable engineers and project managers to prepare, appraise, evaluate and approve financial plans to accomplish specific departmental and company objectives. |
Contents
Introduction | 1 |
Understanding the Financial Statements | 15 |
Recording Financial Information and Accounting Conventions | 25 |
Analyzing Financial Statements | 45 |
5 | 67 |
Budgeting for Profit Planning | 85 |
CostVolumeProfit Analysis and Leverage | 105 |
Responsibility Accounting and Cost Control | 123 |
Conclusion | 140 |
Relevant Costing in Nonroutine Decisions | 155 |
Applying the Time Value of Money | 169 |
Evaluating Capital Expenditure Projects | 183 |
How Taxes Affect Business Decisions Loc T Nguyen | 207 |
Glossary | 223 |
Interest Tables | 235 |
Flexible Budgets and Performance Reports | 134 |
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What Every Engineer Should Know about Accounting and Finance Jae K. Shim,Norman Henteleff Limited preview - 1994 |
Common terms and phrases
accounting equation accounts receivable activity actual amount annual annuity average balance sheet break-even point buying division calculated cash flows cash inflows chapter CM ratio company's computed contribution margin corporation cost center cost of capital current assets CVP analysis Debit debt decision deductible depreciation direct labor hours direct materials dividends division dollar efficiency variance Engineer Should Know engineering manager equipment equity evaluation Example expenses factory overhead Figure financial statements firm firm's fixed costs fixed overhead flexible budget formula income statement income taxes increase interest inventory leverage liabilities loss method net income net present value Office Supplies Operating income payment performance planning poor poor preferred stock present value process costing profit purchase rate of return Retained earnings revenue selling price standard costs stockholders straight-line tax rate taxable income total assets Transaction transfer price turnover unit CM unit cost variable costs Variable overhead volume variance