Abstract
This paper focuses on value added activity based costing and how it can lead to improved processes and therefore improved profitability. The theory of value added activity based costing is examined in detail and a fictional example (Widgets Inc.) is used throughout the paper as a way of explaining and applying key economic concepts to different aspects of production and marketing.

Tags:value added, activity based costing, economic theory

Abstract
This paper explains Economic Value Added (EVA), an economic performance metric that is used for calculating the net dollar return to shareholders of a company after the cost of capital. The paper explains how to calculate EVA and discusses its pros and cons. The paper also discusses how EVA is used and who uses it.

From the Paper
"Simply stated, accounting profit is revenue minus expenses. So, for example, if a company has revenues of $100mm and expenses of $98mm, its profit is $2mm. However, what is not considered in this equation is the opportunity cost of capital that's tied up in operations. Accounting profit, therefore, does not completely measure the net return to shareholders. EVA does assume the cost of capital and measures the economic profit/loss above or below the hurdle rate or minimum rate of return. In the example above, if the cost of capital was $3mm, the company's economic loss would be -$1mm. So it is possible for a company to have a positive accounting profit, yet a negative economic profit."

Tags:economic profit, capital investment shareholders business accounting

Abstract
The paper examines the article "Economic Value Added (EVA): A New Flexible Tool for Measuring Corporate Performance" where Girotra and Yadav address the benefits of EVA for determining the cumulative value of a business. The paper highlights the premise of the article that EVA contributes an additional measure of value in terms of corporate performance, which other measures do not. The writer of this paper explains why he believes this article is well written and specifically notes that the shortcomings of EVA are also taken into account. The writer concludes by relating why he believes EVA is a beneficial system for companies.

From the Paper
"The article is structured in a comparative framework. The authors for example provide brief but detailed descriptions of the conventional accounting measures, with the reasons for their inadequacy in terms of determining value. In today's volatile business world, value is of utmost importance, particularly in terms of investments. Investors are concerned with knowing the value of a company before making the decision to invest. Companies in turn are obliged to keep a close eye on value and its creation in order to maintain a good relationship with their investors.
"EVA is based upon the advantage that shareholders gain from investing in the company. Items such as interest bearing debt, equity capital, and net operating profit are taken into account when calculating EVA. Shareholders require returns that compensate their risks when investing in the company in the first place. If the company cannot demonstrate a value of return, then it is in effect operating at a loss. Hence, EVA has been implemented by several companies in order to provide shareholders with value that will ensure their loyalty to these companies.
"After explaining the basic concepts, the article continues to demonstrate these by means of a company case study. Factors such as production, earnings, and capital investments are taken into account. A description of the company is followed by detailed calculations to arrive at the company's EVA."

Tags:investors, shareholders, assets, earnings, capital

Abstract
In this article, the writer examines the impact of technology on customers and looks at how technology has been introduced to customers in way that added value. This work further outlines a support plan for customers during technology implementation. In addition, the writer examines how new partnerships with other providers of technology solutions may serve to enhance the experiences of customers.

Outline:
Objective
Introduction
ERP System Adoption
Impact on Customers
Group Technology Deployment
Customer Support Plan
Developing Partnerships in CRM and IT

From the Paper
"Customers are impacted by the deployment of the Information Technology across the organization through receiving better customer service, better customer support and through elimination of time-consuming errors. Another aspect of enhanced service to customers in IT implementation across the organization is automated billing processes in which the company's charges for products and services is billed in increments that are specifically stated, calculated and then totaled for invoicing and billing purposes. For instance, the company that performs specific project completion for a municipality on a regular basis will gain the ability to itemize billing for each specific project with each specific product, service or labor charge itemized within a software program that calculates the expense, bills it to the specific project and the specific product, service, or labor charge for that project with the customer. This method of accounting saves time and avoids confusion giving the company greater accountability and efficiency in billing procedures and resulting in more satisfied customers."

Tags:quality, system, implementation, efficiency

Abstract
This paper relates that Economic Value Added (EVA) may truly be considered the new "hottest thing" in accounting theory because it aims at eliminating the problems accounting faces today by incorporated the concept of a "true economic profit" into accounting and bookkeeping. The author points out that one of the errors accountants usually make, which leads to distorted reporting of a company's earnings, is the fact that equity capital is not taken into consideration as a cost. The paper stresses that stock options grants are an expense and that stock options are a form of compensation, which should be expensed as exercise rights vest.

Table of Contents
The Cost of Equity Capital
Operating vs. Financing Decisions
Pension Plan Accounting
Full Cost Accounting
Stock Options

From the Paper
"Stewart suggests that the pension cost (which is to be determined) should be calculated as the difference between the service cost on one side and the difference between the fund return and the liability interest. The fund return is determined as the return on a portfolio of bonds of similar characteristics with the pension fund, so that in the end the return on the fund and the liability interest will cancel one another. In this way, the pension cost will be equal to its service cost."

Tags:enron, pension, stock, equity, capital

Abstract
This paper discusses how Economic Value Added (EVA) is not a new concept in economics and financial theory and is based on the 19th century concept of "economic profit", it has only been widely adopted recently by business firms as an accounting practice. It describes what EVA is and looks at its pros and cons from the point of view of the company adopting the practice and the investors. It also examines how EVA differs from some other emerging accounting practices and the major issues relating to EVA as compared to other commonly used accounting principles. Finally, the possible problems and opportunities that a company adopting EVA principles can face are analyzed.

From the Paper
"In other words Economic Value Added is not the straightforward accounting "profit" that we get by subtracting the costs minus revenue. In EVA we take into account the "cost of capital" that is invested in the business and the cost of capital includes both debt and equity. Hence if we invest, for example, $ 100,000 in a business and get $110,000 as revenue the profit is not simply ($ 110,000 minus $ 100,000 = $ 10,000) since the $ 100,000 at the time of investment had an opportunity cost that has to be accounted for before we determine our "real" profit. If the opportunity cost of $100,000 at the time of investment was $ 120,000, i.e., the investor could earn $ 20,000 by investing his/her money elsewhere, the $10,000 "paper profit" would actually be a "loss" in real terms."

Tags:economics, financial, theory, business, firms, investors

Abstract
This paper investigates Economic Value Added, or EVA, invented and promoted by Stern Stewart & Co. The author points out that this theory is aimed at eliminating the problems that accounting faces today by incorporating the concept of a "true economic profit" into accounting and bookkeeping. The paper states that the EVA concept intends to align reported earnings, something which shareholders always take into consideration when investing in a company, with the actual capital that was loaned by the company.

Table of Contents
The Cost of Equity Capital
Operating vs. Financing Decisions
Pension Plan Accounting
Full Cost Accounting
Stock Options

From the Paper
"One of the errors that accountants usually makes and that leads to distorted reporting on a company's earnings is the fact that equity capital is not taken into consideration as a cost. If debt is considered a cost and debt interest is noted as an expense, than why not see equity as a cost as well, seeing that it is not a free resource, but something invested by shareholders into the company and funds put into the company. As Bennett Stewart points out, "the cost of equity is not a cash cost, it is an opportunity cost". Indeed, it is the equivalent return that a shareholder would expect to earn by investing in other stocks from companies of comparable risk."

Tags:profit, equity, pension, cost, options

Abstract
The paper discusses how Newco is considering shipping electronic parts into the German market where it has just obtained two clients. The paper explains that the company's options are to establish a local warehousing facility in the market in order to service these clients or to ship them under a just-in-time (JIT) basis. However, the paper explains that each of these options comes with some negative ramifications for the firm and the last is impractical because the clients are demanding product delivery times of six hours. The paper points out that locating a warehouse in Hamburg will subject the company to Germany's VAT surcharge and adversely affect its profitability.

From the Paper
"Newco is considering shipping parts electronic parts into the German market where it has just obtained two clients. The company's options are to establish a local warehousing facility in the market in order to service these clients or to ship them under a just-in-time (JIT) basis. However, each of these options comes with some negative ramifications for the firm and the last is impractical because the clients are demanding product delivery times of six hours. Locating a warehouse in Hamburg will subject the company to Germany's VAT surcharge and adversely affect its..."

Tags:value, added, tax

Abstract
The paper posits that if there were some global disaster or nuclear holocaust, the last thing to disappear would be the commercial message; ads in the media are so pervasive that they are bound to ring out the end of the world. The paper asserts that the most disturbing point about ads is that they reduce every item in the world to a commodity and people to no more than consumers. The paper points out that along with the specific content of ads is the overall message that all people need for fulfillment and happiness are material goods. The paper emphasizes that whatever we might personally believe, ads speak for us in defining us and our world as a materialist culture that has no higher values beyond what we can consume.

From the Paper
"Nike footwear radio my room Toyota car radio my room Coca Cola radio my room Trip to Disney World TV home Government service: get out of debt - posters - subway Colgate toothpaste painted steps & walls subway Lottery tickets teletron subway Moore's men's suits poster subway..."

Tags:ads, commentary, control

Abstract
This paper examines the history of the Guardian ad Litem system, which is a system of volunteers and attorneys who represent children who are victims of child abuse and neglect. They investigate a case and make a report to the judge. The paper looks at how effective the program has been and some of the problems it presents.

From the Paper
"Historically it has always been believed that parents took care of their children's best interests but this fallacy became apparent when Dr Henry C. Kempe published "The Battered Child Syndrome" and it was recognized for the first time that such a clinical condition existed and threatened a child's life.

Tags:Guardian ad litem (GAL), Court Appointed Special Advocate (CASA)