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Showing posts from June, 2008

Profession versus Professionalism

I was trying to analyze the definition of words Profession, Professional Body and Professionalism on . (These words are interchangeable used when the Accountants discuss among themselves.) Profession: A profession is an occupation, vocation or career where specialized knowledge of a subject, field, or science is applied. It is usually applied to occupations that involve prolonged academic training and a formal qualification. It is axiomatic that "professional activity involves systematic knowledge and proficiency." Professions are usually regulated by professional bodies that may set examinations of competence, act as a licensing authority for practitioners, and enforce adherence to an ethical code of practice. Professional Body: A professional body or professional organization, also known as a professional association or professional society, is an organization, usually non-profit , that exists to further a particular profession , to protect

Ethical Decision Making

Recently BBC uncovered in the report on Child Labour practices in India where suppliers of the clothes of high street retailer Primark had used child labour to finish the goods. Primark fired all the three firms involved . The question is about Ethics and Ethical values. What is Ethics ? Business ethics is the broadest of the three terms. It addresses the morality of both economic systems (e.g., the free market, socialism, communism) and the conduct of the organizations found within these systems (e.g., corporations in a free market system). Corporate ethics may be viewed as a subset of business ethics. Corporate ethics focuses specifically on issues of morality associated with business enterprises. These include relations internal to the organization (e.g., treatment of employees, dealings with shareholders, questions concerning product quality and customer service, etc.) as well as external relations (e.g., interactions with government, specific communities, society as a who

Who will be a better Accountant - Shahrukh Khan or Aamir Khan ?

Shahrukh Khan and Aamir Khan are two famous personalities in Bollywood. Both are equally successful and have a huge fan following. It depends upon what you consider success? Is it female fan following or fame or money. Never mind !!! I am looking at the traits each one has. Then let you decide who will be a better accountant. Please use your imagination which one is more suitable to be a successful management accountant. Shahrukh Khan Mostly acts in movies that have contemporary themes. Mostly works with a same set of people and makes movies with them and repeats the success. He has a good PR and he tours around the world. All the tours are well publicized giving the details of what he eats, whom he meets and when he goes to sleep. This makes him known and people are interested in his next movie release. He is approachable and gives frequent interview on TVs. He started as a TV star. Sometimes he host TV quiz shows.

Knowledge Process Outsourcing KPO

Knowledge process outsourcing (KPO) is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost. Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled staff. KPO firms, in addition to providing expertise in the processes themselves, often make many low level business decisions—typically those that are easily undone if they conflict with higher-level business plans. It is being claimed that KPO is one step extension of Business Processing Outsourcing (BPO) because BPO Industry is shaping into Knowledge Process Outsourcing because of its favorable advantageous and future scope. But, let us not treat it only a 'B' replaced by a 'K'. In fact, Knowledge process can be defined as high added value processes chain where the achievemen

Cultural Web - A big challenge

A big challenge in most organizations is whether they know what their culture is - and whether it is the right culture to support their strategy!! Organizational analysis aims to generate an understanding of the organizational structure and culture of the system the project is looking at. This can help in understanding the ease or difficulty with which new strategies can be adopted. Check these for your own organisation: How would you describe your organisational culture? How would the workforce describe it?  Would this be the same as the directors and top management think? How would your clients, customers, users and suppliers describe it? What is the does this mean about the way the organisation operates? Does this culture support or sabotage your strategy? What are the clues which tell people about your strategy? Source: Flickr The Cultural Web, developed by Gerry Johnson and Kevan Scholes in 1992, provides one such ap

Business, Customer Value, Cost and Management Accounting

This is a guest post by CMA Devarajan Swaminathan. He has over 10 years post qualification experience in Accounting, Auditing, Finance as well as Management Accounting. He is the proprietor of Devarajan Swaminathan & Co - Cost Accountants. View CMA.Devarajan Swaminathan's profile My understanding of a BUSINESS: Back to basics There is a customer: He has money I am the supplier: I have the product. The aim is to sell him my product in return for his money. A business is not and cannot be more complicated than this. Everything revolves around this. To do the above I have spent resources like financial, technical, physical, human to bring the product first at my doorstep and then to the customers doorstep. My aim is to sell my product and in turn take his money. The difference what we call PROFIT , is actually my earnings for (a) the efforts I have put (b) the risk I have taken. How well I do the above is what holds the key to the success or failure of a business ? The above i

Firefox How do they make money

I downloaded Firefox 3 yesterday . I and am very happy with the improvements Mozilla has made to the browser (more than 15000 to be precise). Over 8 million downloads has been made in 24 hours. Let's see whether it becomes a world record. Yesterday, I downloaded the add-on Feedly and it provides a wonderful browsing experience to read all my RSS feeds in one window like a magazine. You should have a iGoogle account. to use Feedly since it gets data from your igoogle settings. I wondered how free software like Firefox, Digg, Snurl make money or fund their projects ? I searched on google and found answers: Firefox Mozilla Corporation makes all that money because of the Google Search box on the top right. If you search with that box (which I do all day long) and you click on the Google ads on the results page Firefox gets ~80% of that. They also have Amazon in the search box, and other services that I'm sure kick them back some affiliate fees. Brilliant. So

Activity Based Management - Dispelling the myths - Part II

This is a Guest Post by Rajendra Patil, Pune, India Profile: A technocrat with 17 years of proven success in ERP Implementation, Business Analysis, Consultancy Assignments in Strategic Cost Management, Profitability Analytics, Performance Management and Business Process Management in conjunction with the enterprise wide BI solutions. Currently working as an independent consultant in the area of Performance Management and Profitability. This is the concluding part of earlier post Activity Based Management - Dispelling the Myths - Part I Myth: Cost systems play a limited role Fact: Traditionally this has been true and it has its own reasons. The calculations were not accurate. As it was based on putting overheads as ‘peanut butter’, it did not reflect the changes in the business scenario into the costs. ABM benefits the organization in various ways like Information for effective decision-making Information to continuously improve processes and re

Job Rotation - A Donkey Story

Have you heard the story of "The Washer man and the Foolish Donkey"? To refresh your memory, and for the benefit of those who have not grown up listening to this moral story, it goes like this... There was once a washer man who had a donkey and a dog. One night when the whole world was sleeping, a thief broke into the house, the washer man was fast    asleep but the donkey and the dog were awake. The dog decided not to bark since the master did not take good care of him and wanted to teach him a lesson. The donkey got worried and said to the dog that if he doesn't bark, the donkey will have to do something himself. The dog did not change his mind     and the donkey started braying loudly. Hearing the donkey bray, the thief ran away, the master woke up and started beating the donkey for braying in the middle of the night for no reason. Moral of the story "One must not engage in duties other than his own" Source: Dog Newton Now take a new look at

Activity Based Management - Dispelling the myths - Part I

This is a Guest Post by Rajendra Patil from India Profile: A technocrat with 17 years of proven success in ERP Implementation, Business Analysis, Consultancy Assignments in Strategic Cost Management, Profitability Analytics, Performance Management and Business Process Management in conjunction with the enterprise wide BI solutions. Currently working as an independent consultant in the area of Performance Management and Profitability. The list of myths on Activity Based Costing for discussion was posted by CMA.Siva Rama Krishna Srirangam . Rajendra Patil of AppsConsulting dispels the myths in two part series on the Management Accountant Blog and companies in India that have implemented ABM. We have to understand the characteristics of the customers in each quadrant. We have to try to bring them in the ‘Top-Right’ quadrant. Myth : All that we need are more cost centers; Fact : More cost centers would help you to get more accurate ‘Cost center accounting’. ABC