Activity-Based Costing (ABC) is a special costing model that manages business costs or expenses by identifying activities used for the production of products or services. The costs of associated activities are assigned to all products or services in order to ascertain the actual value of the output. This model...
Los Angeles business owners contemplating a business sale should engage in exit planning early – and not wait until the economy improves – to achieve premium sale prices for their companies.
Many companies are in an acquisition mode right now. Strong companies with solid credit ratings...
A family office is defined as a private company that oversees the fiscal well-being of a single family. As a business run by and for a single family, the family office operates by centralizing the management of a single family’s finances. This generally includes a wide array of various...
In these trying economic times, many companies are looking for ways of cutting business expenses. As more and more businesses are floundering and failing under economic pressure, it is becoming increasingly important to find means of keeping companies not just out of bankruptcy, but financially successful as well. For struggling businesses,...
Organizational change strategies such as rightsizing and restructuring are designed to transform companies into more efficient, agile, customer-driven organizations. However, these processes have both short-term and long-term consequences. Before undertaking a rightsizing/restructuring program, senior management should take pains to communicate the vision, process, expectations, and intended goals. Restructuring/rightsizing is a...
Negotiating contracts can be stressful, even for the most seasoned negotiator. For those new to the process it can be daunting. Ideally both parties are equally invested in the deal going through. But in most cases, one party has a greater need or desire, and there is an imbalance...
When a multinational corporation based in the United States owns over 50 percent of a foreign entity, the American parent company is typically required to provide consolidated financial statements. In such cases, the financial accounts of the foreign subsidiary must first have currency translation applied to...
Business financing options generally fall into two categories: debt funding and equity funding. Debt funding refers to money that is loaned to a company with the expectation that it will be paid back, usually with interest, within a given timeframe. A lender does not have an ownership stake in...
There are a myriad of ways an employee can steal from an employer. One common practice is to get the organization to issue a payment for a fraudulent purpose. Based on false information, such as an invoice from a non-existent vendor, a forged receipt or an incorrect timecard, the...
Corporate governance—the establishment of processes, structures and controls to effectively run a business organization—has been a subject of increasing interest and concern over the past decade as a result of financial bubbles and scandals that have rocked the corporate world, and most recently resulted in a global financial and economic...