Implementation of Time-Driven Activity-Based Costing System in the Manufacturing Industry

In the current business environment, the costing system used within the firms has prominent impact on strategic decisions. High-quality cost data significantly increases the quality of firms' strategic decisions. The activity-based costing system has failed to satisfy the needs of firms operating in the competitive economic environment. The time-driven activity-based costing system is the developed version of activity-based costing system. Time-driven activity-based costing system is one of the most sophisticated costing systems that enable firms to accurately calculate the cost of goods and services. Time-equations are used in time-driven activity-based costing system to estimate the time consumed by each activity. This chapter aims to discuss main dynamics of time-driven activity-based costing system and provides an illustration of this costing system in the manufacturing industry. The case study demonstrates that time-driven activity-based costing system is useful in calculating idle capacity cost.

The Concept of Corporate Reporting and Audit Quality

The responsibility of auditors is a controversial topic that has brought much debate amongst academics and experts alike in recent years. This chapter's aim is to set the framework in which audit reporting exists: part of the wider landscape of corporate reporting and the final fragment of the sphere of the financial statements audit quality. By using a general-to-specific deductive approach, the authors discuss the international and European perspectives on the process of financial statement audits, as well as the stakeholders or audit and audit reporting, in order to clearly define the regulatory space in which any changes in this field occur. The authors also discuss the theories that explain the process of audit reporting, with an emphasis on the lending credibility theory, the inspired confidence theory, and the sociology of education theory. The authors consider that these theories explain the improvements undertaken to improve the communicative value of the audit quality.

Important Managerial Controversies in Conversion of Financial Statements

Functional currency has been defined as the currency of an entity's main economic environment. A group does not have a functional currency, but the functional currency is set at the level of each group entity. Determining each functional currency at each component of a group is made by looking at several factors. In this chapter, the conversion occurs when the currency in which the financial statements are prepared is different from the presentation, and the important managerial controversies are presented in the conversion of the financial statements. The results show that the conversion of financial statements applies only if the entity whose financial statements are converted has a functional currency that is not a hyperinflationary economy.

The Effect of Accounting Manipulation on the Business Performances

The dual nature of creative accounting has been intensely debated since its emergence in the Anglo-Saxon economies. The lack of a common accounting language, different accounting systems at international level, applied in different languages, international legislation harmonized more or less correctly, amidst a turbulent economic environment, left room for multiple interpretations and meanings. This chapter presents the advantages of fair value in manipulating business performances by creative accounting, but there are voices that are challenging this concept because of its volatility and tendency to subjectivism, and also manipulating the models used to evaluate balance-sheet structures or profit and loss account. The results show that fair value was introduced by accounting norms in response to the deterioration of confidence in the financial statements and targets a new system for assessing the entity's assets and liabilities.

Management Accounting

This chapter illustrates some aspects of sustainability balanced scorecard and its implementation within an economic entity in the aluminum industry. The main objectives of this chapter are to present balanced scorecard and integrate the fifth pillar into sustainability balanced scorecard, including some of its considerations and challenges. The authors identify the causes of SBSC appearance and its conceptual-evolving treatments, some considerations stemming from the practical experience of specialists, but also some current and future challenges. The focus is on the implementation of the SBSC within an economic entity in the aluminum industry by presenting an original case study. It highlights the steps taken in designing and presenting the SBSC, including the architecture of the strategic sustainability map used to translate the strategic objectives of the entity and the performance indicators. Through the authors' contribution, a new conceptual-empirical framework is created to consider debate and aspects of sustainability encountered in the business environment around the world.

Environmental Management Accounting

This chapter provides a business perspective on the policies and benefits provided by implementing environmental managerial accounting in various areas of activity. The main objectives of this chapter are to present the evolution of the EMA and its policies, business analyses carried out by specialists, including the benefits of implementing the EMA. All of these objectives are transposed into a case study based on the ABC method performed at an energy company. The implementation steps specific to the ABC method are presented by establishing the list of main activities, cost drivers, allocation of indirect costs, and determining unit costs. The theoretical aspects presented the basic national and international studies in the literature. The case study is based on data obtained from the energy company. The chapter ends with the authors' conclusions on the benefits of implementing EMA/ABC. This chapter contributes to the expansion of the theoretical and empirical framework of EMA and the methods used to implement it within various business companies.

Circular Economy and Circular Business Models in the Actual Global Ecological Context

This chapter aims to synthesize some of the current issues of the circular economy and circular business models. Based on the international literature, the chapter highlights aspects such as the conceptual theoretical approaches of the circular economy and circular business models, interconnecting the principles of the circular economy, the difference between the linear and the circular economy, the circular economy and the sustainable development, the supply chain within the circular economy, possible business models of the circular economy, advantages and limitations in the successful implementation of the circular economy and supporting sustainability, other aspects of the circular economy and sustainability. The covered topics are based on the studies conducted by specialists and also present some author opinions on the sustainable development and circular economy. The chapter ends with the authors' conclusions on the impact of the circular economy and circular business models in the actual ecological context, launching possible future research topics for specialists.

Sustainability Reporting

This chapter presents, in a descriptive manner, the interrelation of the sustainability reporting concepts and the sustainability disclosure through internal and external stakeholders. The main objectives of this chapter are approaching the disclosure of environmental information, presenting the views of the stakeholders on the content and format of environmental reporting. The factors underlying the disclosure of the environmental information and the impact of these, including the views stakeholders on the content and presentation format of the environmental reporting, are presented and analyzed. A case study is also presented in order to highlight the disclosure and presentation of the environmental report of an industrial entity and the importance of the accounting information provided. This chapter brings a theoretical contribution to expand the knowledge on the environmental disclosure and reporting approaches. The authors' approaches remain open to the expansion of these issues at both national and international level and both in the academia and business area.

Perceiving the Value of the Company in Managing Business Risks

Seen as a reflection of the clear vision of some extreme leaders, the overall performance of the entity is achieved today against the backdrop of the innovation process. The value of the company is necessary to become the key element in any entity development strategy. However, it requires a comparative analysis of the entity with other market players or emerging markets. This chapter analyzes the new research directions at the intersection between accounting and management, with the role of potentiating the important valorization of managerial culture and the implementation of an integrated system of performance indicators to accurately determine the value of a company.

Planning, Budgeting, and Green Controlling

The issue of this chapter is to illustrate the aspects of planning, budgeting, and controlling green activities within an economic entity and their impact on the profitability of the entity. The objectives of this chapter are to present the strategic planning, budgeting, and control/controlling processes; the presentation of the principles underlying the budgeting; and the presentation of a case study on the elaboration of the budgetary process and the controlling of an economic entity in the manufacturing field. The chapter presents the types of integrated budgets and how to report the achievement of the objectives. By providing effective information on planning and budgeting, green controlling becomes an indispensable tool for any economic entity in monitoring and measuring performance. Thus, through the contribution made, a new theoretical and empirical framework is created by the authors, which facilitates the identification of new ideas, themes, and debates of other aspects encountered in the activity of the economic entities.