| Websites with Relevant Information on Profits and Returns
previous page August 26, 2004 1. Introduction. The purpose of this article is to identify Internet websites with information relevant to an organization’s profits and returns. Sites were selected for this article on the basis of their potential use to management accountants. Accounting information and data are important components of an organization’s analysis of its profits and returns. And, therefore, management accountants should play an important role in the research and analysis within an organization related to profits and returns. Hopefully, the sites identified in this article will assist the management accountant in this role. Twenty-seven websites are identified in this article. With respect to profits and returns, the accountant’s area of most interest, and therefore the focus of the articles selected, are the dollar-based measurements that reflect profits and returns. Closely related to profits and returns are two other accounting metrics, which can be focused on in research and analysis, have important effects on profits and returns, and have websites dealing with the metrics. These metrics are prices and margins. Therefore, this article has four sections dealing with following metrics: Profits Prices Margins Returns Websites identified on these four topics were found using the Google search engine, and using several terms associated with the metrics. These sites are given in the following four sections. 2. Profit Analysis. At this site, hbswk.hbs.edu/topics/dispatch, maintained by Harvard Business School Working Knowledge, several articles dealing with profitability can be linked to. Jonathan Bymes wrote these articles. Such topics as understanding what customers are most profitable and working with vendors to increase profits are written about. Cost-volume-profit analysis is reviewed at this site, www.toolkit.cch.com/text/P06_7500.asp, maintained by CCH, Inc. From this site, you are able to link to explanations for fixed and variable costs, breakeven analysis, contribution margin analysis, and operating leverage. An example of breakeven analysis is given at this site, www.toolkit.cch.com/text/P06_7530.asp, maintained by CCH, Inc. An analysis of how the breakeven point is changed when a fixed asset is purchased is provided. The level of total fixed asset costs is tied into operating leverage and effects on profits. An interactive calculator can be linked to, where breakeven computations and can be performed. A review of the analysis used in determining the breakeven point is provided at this site, www.bizbound.com/breakeven.htm, maintained by the Bizbound Business Resource Center. The review suggests steps that can be taken, based on the breakeven point information, to influence profits. 3. Pricing Analysis. The British organization Tutor2U maintains this site, www.tutor2u.net/business/marketing/pricing_influences.asp, at which you can link to information on such pricing-related concepts and principles as: pricing influences; cost plus pricing; pricing and return on investment; expansionistic pricing; penetration pricing; price skimming; variable cost pricing; and others. CCH, Inc. maintains this site, www.toolkit.cch.com/text/P03_5230.asp, from which you can get an overview of research related to determining price behavior of various products, e.g. behavior such as price elasticity. From this site, you can link to information on getting primary and secondary data that will help in analyzing price characteristics. The Department of Defense maintains this site, www.acq.osd.mil/dpap/cpf/index.html, which has links to an enormous amount of information related to setting prices. Topics include conducting market research for price information and using quantitative techniques, such as statistical analysis and regression analysis, for analyzing price information. Although this site focuses on helping potential government contractors with their pricing, a lot of the information is relevant to determining prices for any market. The Federal Aviation Administration (FAA) has a comprehensive pricing handbook at this site, http://fast.faa.gov/PricingHandbook.cfm?p_title=Functions. Most, if not all, important factors related to setting prices are discussed. Factors include costs, profitability, and market research. Although this handbook is oriented to contractors applying for FAA contracts, a lot of the information in the handbook is applicable to determining prices in any market. At this Census Bureau site, www.census.gov/cir/www , Current Industrial Reports can be downloaded. Current Industrial Reports, based on company surveys, provide production quantity and price data on products shipped. From this data, unit price information can be computed. Data is given on the basis of the NAICS classification system. This site, www.bls.gov/ppi/home.htm, is from the US Department of Labor’s Bureau of Labor Statistics. Data on this site shows change over time in selling prices on many classes of products and services. From this data, management accountants can determine historic percentage increases for a product class that relates to their company. This article, at www.imakenews.com/scip2/e_article000071479.cfm?x=130359,4234165, a site maintained by iMakeNews.com, discusses using the Internet to find pricing information. The Internet introduces a database of pricing unlike anything previously available. However, the database is scattered, and to get to it manually requires a lot of tedious work. Internet retailers only give prices, on possible product purchases, one at a time, so a lot of clicking is required, to build up much of a database. Also, some products and services (e.g. airline ticketing) require a choice of associated selections before a final price will be calculated, based on the selections. The article mentions that Internet “harvesting”, “mining”, or “farming” tools can automate the process. The article also discusses how some companies must submit their prices to government regulatory agencies, which then are made publicly available on the agencies’ websites. An example is telecommunications companies and the Federal Communications Commission. Unfortunately, often the companies’ submissions can be complicated. Web harvesting tools can also be used here. please click here to go to the next and final page |