Sunil Bharti Mittal from Financial Times…

This article is picked from Financial Times. For more details, please visit www.ft.com

Profile: Sunil Bharti Mittal
By Jo Johnson in New Delhi

Published: November 27 2006 08:48 Last updated: November 27 2006 08:48

One train can hide another, goes the famous warning sign at French railway junctions. The same might be said for Indian entrepreneurs. In a world agog at the success of steel baron Lakshmi Mittal, the Carnegie of the modern era, the extraordinary rise of his unrelated namesake, Sunil Bharti Mittal, chairman of Bharti Enterprises and the czar of Indian telecoms, has gone relatively unnoticed. That is about to change.

Whereas Lakshmi Mittal left India to build up his group overseas and is only now starting to focus on India, Sunil Bharti Mittal, 49, has done exactly the opposite. From an unassailable position of strength in the Indian mobile telecommunications market, where it has a market share of over 25 per cent, Bharti is not only itself going global but also becoming the partner of choice for Fortune 500 companies seeking to enter the Indian market.

Copyright The Financial Times Limited

This article can be found at:
http://www.ft.com/cms/s/4a4dcbbc-7dee-11db-84bb-0000779e2340,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340,_i_email=y.html

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10 Myths on Activity Based Costing

Dear Management Accountants,

Activity Based Costing has not became popular in India to what ever extent it deserve. There are so many Myths as far as this concept is concerned. This concept is developed to ascertain the accurate process cost data on activities and products and can be used for accurate product cost data, cost & OH control , identification and elimination of non- value added activities etc.,.

But in practice, in India, Its adoption is very limited and heared several comments Against its use and the most common are listed below.

• ABC systems are too difficult to implements and use:
• ABC systems are too costly; and
• ABC systems are too complex to understand
• Improving our existing system will do the job:
• All that we need are more cost centers;
• Machine-hour systems save the time; and
• A cost system should be kept simple.
• We do not need more accurate product costs:
• We know what our products cost; and
• The market sets prices, so we do not need product costs.
• Cost systems play a limited role:
• We cannot do anything about fixed costs;
• Only manufacturing costs are product costs; and
• Product costs are not useful for managing overhead activities.

Now I request the members to examine , discuss and share their views on each and every comment on ABC given above as to whether they are correct or are only myths. Let us have very clear views on this topic since this is a very important tool for Management Accountants.

Having clear views on this topic will help us in Answering & Convincing the World about its utility in case if we intend to Practice in this field.

(Let all of us take this as a Group discussion or a project etc., and start discussing)

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10 Myths on Activity Based Costing

Dear Management Accountants,

Activity Based Costing has not became popular in India to what ever extent it deserve. There are so many Myths as far as this concept is concerned. This concept is developed to ascertain the accurate process cost data on activities and products and can be used for accurate product cost data, cost & OH control , identification and elimination of non- value added activities etc.,.

But in practice, in India, Its adoption is very limited and heared several comments Against its use and the most common are listed below.

ABC systems are too difficult to implements and use:
ABC systems are too costly; and
ABC systems are too complex to understand
Improving our existing system will do the job:
All that we need are more cost centers;
Machine-hour systems save the time; and
A cost system should be kept simple.
We do not need more accurate product costs:
We know what our products cost; and
The market sets prices, so we do not need product costs.
Cost systems play a limited role:
We cannot do anything about fixed costs;
Only manufacturing costs are product costs; and
Product costs are not useful for managing overhead activities.

Now I request the members to examine , discuss and share their views on each and every comment on ABC given above as to whether they are correct or are only myths. Let us have very clear views on this topic since this is a very important tool for Management Accountants.

Having clear views on this topic will help us in Answering & Convincing the World about its utility in case if we intend to Practice in this field.

(Let all of us take this as a Group discussion or a project etc., and start discussing)

Read Full Post »

BEST PRACTICE MANAGERIAL ACCOUNTING WITH mySAP™ ERP Financials

I have been involved in SAP Implementation for a couple of years and I have seen the best companies implement SAP and they don’t regret.

SAP offers the best in management accounting and I could not resist promoting the best ERP solution

INCREASE TRANSPARENCY, IMPROVE ANALYTICS, MANAGE PERFORMANCE AND GROWTH

Overhead management

• Automatically assign simple and complex costs to cost centers, internal orders, or business process in a structured, traceable manner
• Leverage best practice cost-accounting methodologies for deeper insight into variances, capacity and absorption models
• Improve the accuracy of internal job costing
• Complete variance analysis to understand cost overages

Activity-based costing

• Use template allocations to easily execute complex allocations
• Leverage full integration with logistics and operational systems to assign accurate operational costs

Product costing

• Provide detailed information on production costs
• Calculate COGM and COGS at each step of the production process
• Support product costing in both process and discrete manufacturing environments

Profit center accountingManagement

• Set accurate transfer pricing to better value the internal exchange of goods
• Improve management consolidation and elimination of intercompany profit and losses
• Analyze the profitability of the smallest unit of responsibility and hold employees accountable

Investment management

• Utilize embedded technologies to streamline net present value calculations and planning
• Automatically create a fixed asset master record during construction and capitalize asset underconstruction
• Save time by transferring information from appropriation requests into an internal order to begin the project

Profitability analysis

• Generate greater insights from multidimensional analysis of market segments by product, customer, order, or strategic business unit
• Adapt analysis to multiple businesses and markets

For information, Click Here

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Read Full Post »

BEST PRACTICE MANAGERIAL ACCOUNTING WITH mySAP™ ERP Financials

I have been involved in SAP Implementation for a couple of years and I have seen the best companies implement SAP and they don’t regret.

SAP offers the best in management accounting and I could not resist promoting the best ERP solution

INCREASE TRANSPARENCY, IMPROVE ANALYTICS, MANAGE PERFORMANCE AND GROWTH

Overhead management

• Automatically assign simple and complex costs to cost centers, internal orders, or business process in a structured, traceable manner
• Leverage best practice cost-accounting methodologies for deeper insight into variances, capacity and absorption models
• Improve the accuracy of internal job costing
• Complete variance analysis to understand cost overages

Activity-based costing

• Use template allocations to easily execute complex allocations
• Leverage full integration with logistics and operational systems to assign accurate operational costs

Product costing

• Provide detailed information on production costs
• Calculate COGM and COGS at each step of the production process
• Support product costing in both process and discrete manufacturing environments

Profit center accountingManagement

• Set accurate transfer pricing to better value the internal exchange of goods
• Improve management consolidation and elimination of intercompany profit and losses
• Analyze the profitability of the smallest unit of responsibility and hold employees accountable

Investment management

• Utilize embedded technologies to streamline net present value calculations and planning
• Automatically create a fixed asset master record during construction and capitalize asset underconstruction
• Save time by transferring information from appropriation requests into an internal order to begin the project

Profitability analysis

• Generate greater insights from multidimensional analysis of market segments by product, customer, order, or strategic business unit
• Adapt analysis to multiple businesses and markets

For information, Click Here

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Bee Sting Therapy

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