Contemporary management accounting practices in UK manufacturing by david dugdale and stephen green

Contemporary Management Accounting Practices in UK Manufacturing David Dugdale Department of Accounting and Finance University of Bristol T Colwyn Jones School of Sociology University of the West of England, Bristol Stephen Green Bristol Business School Home Group Limited AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO CIMA Publishing is an imprint of Elsevier CIMA Publishing An imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Burlington, MA 01803 First published 2006 Copyright © 2006, David Dugdale, T Colwyn Jones and Stephen Green All rights reserved The rights of David Dugdale, T Colwyn Jones and Stephen Green to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science and Technology Rights Department in Oxford, UK: phone: (ϩ44) (0) 1865 843830; fax: (ϩ44) (0) 1865 853333; e-mail: permissions@elsevier.com You may also complete your request on-line via the Elsevier homepage (http://www.elsevier.com), by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN-10: ISBN-13: 0-7506-6871-7 978-0-7506-6871-2 For information on all CIMA Publishing Publications visit our website at www.cimapublishing.com Typeset by Integra Software Services Pvt Ltd, Pondicherry, India www.integra-india.com Printed and bound in Great Britain 06 07 08 09 10 10 Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org To Andrew and Ang This Page is Intentionally Left Blank Contents Executive Summary ix Introduction Literature Review and Historical Context 2.1 2.2 2.3 2.4 Methodology Origins of the project The initial pilot companies The secondary pilot companies The main study A concluding note on methods The Presentation of Financial Information: The Definition of “Contribution Margin” 4.1 Introduction 4.2 Issues of terminology 4.3 “Contribution companies”: The definition of contribution 4.4 Changing financial systems in “Contribution” companies 4.5 The presentation of financial results and the “Relevance Lost” thesis Standard Costing and Variance Analysis 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Introduction Analysis of companies not employing standard costs The content of standard costs The inclusion of standard costs in the profit and loss account The use of variance analysis The purposes of standard costing Changing financial systems in standard costing companies Concluding comments 11 12 37 47 55 57 58 62 63 68 Contents 3.1 3.2 3.3 3.4 3.5 Introduction A brief history of costing Relevance lost and regained: Recent developments Cost accounting practice in the 1990s v 69 71 72 76 79 81 83 85 86 89 90 94 98 102 103 Interaction of Profit Reporting and Costing Systems Contents 6.1 Introduction 6.2 The contribution concept combined with standard costing 6.3 The contribution concept combined with actual costing 6.4 The gross profit/margin concept combined with standard costing 6.5 The gross profit/margin concept combined with actual costing 6.6 Companies not easily classified as primarily contribution or gross margin oriented 6.7 Conclusions: Margins, variances, costing systems and “Relevance Lost” The Treatment of Overhead Costs 7.1 Introduction 7.2 Treatment of manufacturing overhead in internal financial reporting by companies employing contribution concepts 7.3 Treatment of manufacturing overhead in internal financial reporting by companies employing gross profit concepts 7.4 The analysis of overhead for responsibility, product or segmental reporting 7.5 Activity-based costing 7.6 Influences on choice of reporting system vi Budgets, Forecasts and Performance Evaluation 8.1 8.2 8.3 8.4 Introduction Budgeting Forecasting Making sense of financial performance: Segmental and comparative analyses 8.5 Performance measurement and remuneration 8.6 Conclusion Conclusion 9.1 Introduction 9.2 Overview of research findings 9.3 The “Relevance Lost” view of management accounting history 105 107 108 115 117 120 121 122 127 129 130 135 138 146 151 157 159 159 161 168 173 177 179 181 182 190 10 Recommendations 10.1 Introduction 10.2 Changing practices: Issues for reflection 10.3 Research implications 195 197 198 203 References 209 Subject Index 221 Author Index 227 Contents vii This Page is Intentionally Left Blank Executive Summary Research methods This book deals with the presentation and analysis of financial information in the 41 UK manufacturing companies The research was stimulated by a previous investigation that unexpectedly revealed that a number of manufacturing companies present financial information in contribution format rather than in the “gross margin” style consistent with financial reporting requirements A pilot study confirmed that a number of companies use contribution statements in their internal financial reporting However, initial company visits also revealed considerable variation in terminology and much scope for misinterpretation of practice To combat this, companies participating in the main study were asked to provide pro forma Profit and Loss (P&L) accounts and these were analysed and provided the basis for follow-up structured interviews The pro forma P&L formats together with short summaries of practice and company overviews are set out in the Appendix (supplied on CD) to this report Our document-based interviewing method has a number of advantages First, the information presented is likely to be faithful to reporting practice in participating companies at the time of the study Respondents were invited to check the interview summaries and discussion in the main report can be checked against the P&L Executive Summary Contemporary Practices in UK Manufacturing Accounting – a CIMA research project – reveals methods currently used for reporting financial information in UK manufacturing companies Based on 41 companies, it shows a rich diversity of reporting practices that are constrained neither by the financial accounting requirements of SSAP9 nor by any sense of general management accounting trends Instead, Financial Directors choose from a toolkit of “traditional” and “contemporary” practices in constructing reporting systems appropriate to their varied commercial needs, but with a strong leaning towards contribution margin approaches These choices cover a wide range of reporting practices in relation to contribution, margin, profit, variances, budgets and forecasts ix References 216 1999 survey results”, Management Accounting Research, September, 11 (3), 349–363 Johnson, H J and Kaplan, R S (1987) Relevance Lost: The Rise and Fall of Management Accounting, Harvard Business School Press, Boston, Massachusetts Johnson, H T and Loewe, D A (1987) “How Weyerhauser manages corporate overhead costs”, Management Accounting (US), August, 20–26 Reprinted in Cooper, R and Kaplan, R S (1991) The Design of Cost Management Systems: Text, Cases and Readings (1st edition) Prentice Hall, New Jersey, pp 575–580 Johnson, H T (1992) Relevance Regained: From Top-down Control to Bottom-up Empowerment, The Free Press, New York Jones, T C (1992) “Understanding management accountants: The rationality of social action”, Critical Perspectives on Accounting, (3), 225–257 Jones, T C and Dugdale, D (2001) “The concept of an accounting regime”, Critical Perspectives on Accounting, 12 (1), 35–63 Jones, T C and Dugdale, D (2002) “The ABC bandwagon and the juggernaut of modernity”, Accounting, Organizations & Society, 27 (1), 121–163 Joseph, N., Turley, S., Burns, J., Lewis, L., Scapens, R and Southworth, A (1996) “External financial reporting and management information: A survey of U.K management accountants”, Management Accounting Research, 7, 73–93 Kaplan, R S (1985) “Accounting lag: The obsolescence of cost accounting systems”, California Management Review, 28 (2), 174–199 Kaplan, R S (1987) “Regaining relevance”, in Capettini, R and Clancy, D K (eds), Cost Accounting, Robotics, and the New Manufacturing Environment, 7.1–7.29 American Accounting Association, Sarasota, Florida Kaplan, R S (1988) “One cost system isn’t enough”, Harvard Business Review, January–February, 61–66 Kaplan, R S (1998) “Innovation action research: Creating new management theory and practice”, Journal of Management Accounting Research, 10, 89–118 Kilvington, K W (1974) “Has the management accountant emerged far enough and fast enough?” Management Accountant, December, 324–328 References Kuhn, T S (1962) The Structure of Scientific Revolutions, University of Chicago Press, Chicago Kuhn, T S (1970) “Reflections on my critics”, in Lakatos, I and Musgrave, A (eds) Criticism and the Growth of Knowledge, Cambridge University Press, Cambridge Lawrence, F C and Humphreys, E N (1947) Direct Costing, MacDonald and Evans, London Lawrence, P and Lorsch, J (1947) Organization and Environment, Harvard Business School, Division of Research, Boston Lee, R S (1981) “MRP and the organisation”, The Fourteenth European Technical Conference Proceedings, The British Production and Inventory Control Society, 77–85 Lilly, R T (2001) The Road to Manufacturing Success: Common Sense Throughput Solutions for Small Business, St Lucie Press, Boca Raton, Florida Loft, A (1986) “Towards a critical understanding of accounting: The case of cost accounting in the U.K., 1914–1925”, Accounting Organizations and Society, 11 (2), 137–169 Loft, A (1990) Coming into the Light, CIMA, London Longman, D R and Schiff, M (1955) Practical Distribution Cost Analysis, Homewood, Richard D Irwin, Illinois Luscombe, M (1993) MRPII: Integrating the Business, ButterworthHeinemann, Oxford Mackison, G (1981) “How to extend MRP into product costing and the benefits to the business which result”, The Sixteenth European Technical Conference Proceedings, The British Production and Inventory Control Society, 129–139 March, A and Kaplan, R S (1987) “John Deere Component Works, Harvard Business School Case 187-107/8”, reprinted in Cooper, R and Kaplan, R S (eds) (1991) The Design of Cost Management Systems, Prentice Hall, New Jersey Matthews, D R (1961) “Treatment of stock-in-trade and work in progress in financial accounts”, The Cost Accountant, February, 52–53 Middleton, K A (1968) “Standard costing overhead variances”, Management Accounting, Feb, 60–67 Miller, P and O’Leary, T (1993) “Accounting expertise and the politics of the product: Economic citizenship and modes of corporate governance”, Accounting, Organizations and Society, 18 (2/3), 187–206 217 References 218 Mitchell, F and Walker, S P (1997) “Market pressures and the development of costing practice: The emergence of uniform costing in the U.K printing industry”, Management Accounting Research, 8, 75–101 NAA (1961) “Current application of direct costing”, N.A.A Research Report 37, National Association of Accountants, New York NACA (1953) “N.A.C.A Bulletin No 23 Direct Costing”, National Association of Cost Accountants, New York Noreen, E., Smith, D and Mackey, J T (1995) The Theory of Constraints and its Implications for Management Accounting, The North River press, Great Barrington, MA Quail, J M (1996) “Proprietors and Managers: Structure and technique in large British enterprise 1890 to 1939”, PhD thesis, University of Leeds Robinson, M A (ed.) (1990) “Contribution margin analysis: No longer relevant/Strategic cost management: The new paradigm”, Journal of Management Accounting Research, 2, 1–32 Roslender, R and Hart, S (2001) Marketing and Management Interfaces in the Enactment of Strategic Management Accounting Practices, CIMA Publishing, London Roxburgh, J G (1983) “Integrated manufacturing and accounting”, The Eighteenth European Technical Conference Proceedings, The British Production and Inventory Control Society, 147–160 Ryan, R and Hobson, J (1985) Management Accounting: A Contemporary Approach, Pitman, London Sandretto, M J (1979) “Paramount Cycle Company, Harvard Business School Case 180-069”, reprinted in Cooper, R and Kaplan, R S (eds) (1991) The Design of Cost Management Systems, Prentice Hall, New Jersey Scapens, R W (1991) Management Accounting: A Review of Recent Developments (2nd edition), Macmillan, London Scapens, R., Turley, S., Burns, J., Joseph, N., Lewis, L and Southworth, A (1996) External Reporting and Management Decisions, CIMA, London Sizer, J (1963) “Marginal costing – caution!”, The Cost Accountant, March, 86–88 Sizer, J (1973) “Accountant’s contribution to data collection, solution control”, Management Accounting, February, 49–52 Smith, D (2000) The Measurement Nightmare: How the Theory of Constraints Can Resolve Conflicting Strategies, Policies, and Measures, St Lucie Press, Washington References Solomons, D (1950a) “Uniform costing – A survey Part I”, Economica, May, 237–253 Solomons, D (1950b) “Uniform costing – A survey Part II”, Economica, November, 386–400 Solomons, D (ed.) (1952) “The historical development of costing”, in Studies in Costing, Sweet and Maxwell, London Solomons, D (1965) Divisional Performance: Measurement and Control, The research foundation of Financial Executives Institute, New York Thompson, J S (1958) “What a works manager expects from his cost accountant”, The Cost Accountant, June, 12–15 Vollmers, G L (1996) “Academic cost accounting from 1920–1950: Alive and well”, Journal of Management Accounting Research, 183–199 Wheldon, H J (1937) Cost Accounting and Costing Methods (4th edition), MacDonald and Evans, London Wilson, R M S (1999) Accounting for Marketing, International Thomson Business Press, London Wilson, R M S and Chua, W F (1988) Managerial Accounting: Method and meaning, Van Nostrand Reinhold (International) Co Ltd, London Witham, R M (1985) “Making MRP work in the pharmaceutical industry”, The Twentieth European Technical Conference Proceedings, The British Production and Inventory Control Society, 96–100 219 This Page is Intentionally Left Blank Subject Index This Page is Intentionally Left Blank Balanced scorecard, 177 Best practice, 130, 154, 197 Bill of material (BOM), 33 Bonus schemes, 175–7, 189, 202 Bottleneck management, 42–3 Bottom line, 145–6, 187 British Federation of Master Printers (BFMP), 16–17 British Iron and Steel Federation, 17 Budgeting, 11, 12, 159–61, 172, 177, 188–9 beyond budgeting, 6, 161, 178 influence of technology, 172 open attitudes to, 201 variations in, 169–71 Business units, 141, 143, 172, 186 Channel profitability, 145 CIMA Contemporary Practices in UK Manufacturing Accounting project, initial pilot companies, 58–62 main study, 63–8 origins, 57–8 secondary pilot companies, 62–3 Comparative analysis, 169–71, 172 Computers, 12, 32–3 Contract profitability, 144 Contribution, 71–2, 107, 129 caveats, 123–4 changing financial systems, 79–80 combined with actual costs, 115–17 combined with full standard costs, 108–12, 113–14, 123–4 combined with marginal standard costs, 112–13, 114 combined with measurement of business units, 138 definition, 76–8 employment of, 123 neither primarily contribution nor gross-profit oriented, 121–2 preference for, 125 prevalence of, 182–4 recommendations, 197–200 segmental analysis, 186 terminology, 72–6 Contribution by product, 140–4 net profit, 141–2 non-manufacturing costs, 141–2 overhead allocation, 141 performance, 140–1 profitability, 140 sales, marketing, distribution, 142–3, 145 sales/material costs, 140 Subject Index ABC see Activity-based costing (ABC) ABM see Activity-based management (ABM) Above the line, 145 Absorption costing, 4, 11, 13, 27, 85, 144–6, 181, 183, 187 development of, 14 hegemony of, 18 as inaccurate, 38–9 spread of, 15–18 traditional, 48–9 Accounting Standards Steering Committee, 30 Activity-based costing (ABC), 3, 4, 11, 51, 187, 191, 193 consciously rejected, 149–50 first wave/second wave, 45, 130 interest in, 147–8 limited use of, 202 reformulated, 45–6 support for/lack of interest in, 150–1 tried in the past, 146–7 versus throughput accounting, 41–4 Activity-based management (ABM), Actual cost, 93, 184 combined with contribution, 115–17 combined with gross profit/margin, 120–1 Actual profit, 140 American Production and Inventory Control Society (APICS), 33 Association of Bronze and Brass Founders, 17 Attributable costs, 143 Attributable overhead, 138 223 Subject Index 224 Contribution-per-unit-of-limitingfactor, Cost accounting: in 1990s, 47–50 change to management accounting, 31–2 critique, 37–8 debates (1961–1975), 30–1 developments (1980s–1990s), 41 history of, 12–37 performance measures as misleading, 39–40 recent developments, 37–47 recent practice (1990s), 47–53 research, 50–3 Cost analysis, 139–40 Cost objects, 129, 143–4 Direct (marginal) costing, 5, 11, 27–8, 30, 41–2, 46, 113, 181–2 controversy, 25–8 dismissal of, 191–2 prevalence of, 182–4, 188–9 recommendations, 199–200 Direct profit, 143 Distribution cost, 142 Economic value added (EVA), 3, 4, 174, 177, 178 Enterprise Requirements Planning (ERP), 46 Exposure Draft (ED6), 30–1 External financial reporting, 185–6 External financial standards, 154–5 Factory accounts, 12–13 Federation of British Rubber and Allied Manufactures, 17 Financial accounting, 19–20, 29 Financial reporting, 29, 85 simple systems, 198–9 Financial results, 81–2 Financial systems, 102–3 Fixed costs, 142 Fixed overhead, 97, 143, 184, 186 Forecasting, 11, 161–8, 177, 188 combination, 166, 171 current month, 167 full year data, 171 not prepared, 162 previous year comparisons, 171, 172–3 rolling, 164–6 systematic use of, 201–2 to end of financial year, 162–4 to end of following year, 166 variations, 167–8, 171–3 Functional costing, Gallic parent companies, 88–9, 139 Goldratt Institute, Government policy, 17–18 Gross profit/margin, 129, 141, 144, 145, 155, 183, 187 combined with actual costs, 120–1 combined with standard costs, 117–20 neither primarily contribution nor gross-profit oriented, 121–2 ICMA, 17 Incentive schemes, 189 Information technology (IT), 152 Innovation, 5–7, 182 Job-order cost plans, 20–1 Job profitability, 144 Just-in-time (JIT), 36, 85 KPMG, Labour, 77, 96 Labour costs, 92–3, 137 Major contractors, 87 Management: innovation in, 5–7 research on, 6–8, 50–3 Management accountants, 53 Management accounting, 31–2, 181–2 adoption of new practices, 3–4 critique of, National Association of Accountants (US), 27 Net profit, 143 New management accounting, Overhead, 97, 130–8 avoidance of spurious allocations in service industry, 202–3 business unit approach, 141 sparing apportionment of, 201 Overhead cost, 44, 92–3, 129–30, 187 Overhead recovery rates, 20, 44, 48, 124, 136–7, 183 Overhead variances, 184–5 Performance measurement/ remuneration, 178 bonus schemes, 173 cash generation, 174 combination of measures, 175–6 cost control, 174 economic value added, 174 personal performance, 177, 178 profit versus budget/target, 174, 175 residual income, 174 return on capital employed, 174, 175 Price, 85 Price Control Act (1941), 18 PricewaterhouseCoopers, Product costing, 85, 129–30 Product line contribution, 140–4 Product profitability, 144 Production-costing relationship, 35 Production costs, 78 Production technology, 151–2 Profit and loss (P&L), 49–50, 72, 87, 138, 185–6 actual/budget variance, 170, 177 adjustment line, 107 segmental/comparative analysis, 168–71, 172 Recommendations: avoidance of spurious overhead allocations in service industry, 202–3 limited use of activity-based costing, 202 limited use of standard costs/ variances, 200 management/executive bonus schemes, 202 marginal costing/contribution analysis, 199–200 more open attitudes to budgeting, 201 routine reporting of profitability for key elements of business, 200 simple financial reporting, 198–9 sparing apportionment of overhead, 201 systematic use of forecasting/trend analysis, 201–2 Subject Index debates concerning, 4–5 new theories, Manufacturing, Accounting and Inventory Production Control System (MAPICS), 34 Manufacturing costs, 13 allocation, 141–2 non-allocation, 142–3 Manufacturing overhead, 130–1 combination methods, 133–4 exclusion from value of stock, 131–2, 134 and gross profit, 135–8 include part of value, 132, 134 make annual adjustments, 132, 134–5 make monthly adjustments, 132, 135, 137 recommendations, 134–5 relegation to foot of P&L, 138 report monthly marginal costing/absorption costing net profit, 133, 135 Margin on variable cost, 142–3 Marginal costing see Direct (marginal) costing Market facing, 143–5, 186 Marketing, 141, 142–3, 145 Material cost, 92–3, 140 Materials, 77, 95–6 Materials Requirements Planning (MRP), 33–7, 42–3, 136, 191 Montgomery, 37 225 Subject Index 226 Relevance Lost thesis, 11, 47–8, 52, 81–2, 124–5, 129, 138, 190–3 and regained, 37–47 Relevant costing, 11 Remuneration see Performance measurement/remuneration Reporting systems: best practice, 154 choosing, 151–5 depth of analysis, 153 external financial standards, 154–5 form of analysis, 153 information technology, 152 parental influence, 152, 168 production technology, 151–2 size and autonomy, 153–4 Research: international comparisons, 207–8 issues, 205–7 methodology, 203–5 see also CIMA Contemporary Practices in UK Manufacturing Accounting project Residual income, 174, 178 Return on investment, 186 failure to use, 86–9 inclusion in P&L, 90–4 integrated into financial reporting, 94 limited use, 200 purposes, 98–100 reporting, 93 Standards, 154–5 Statement of Standard Accounting Practice No 9: Stocks and Work in Progress (SSAP9), 30, 205 Stern Stewart, Stock valuation, 29, 131–2, 134, 185–6 Supplementary rates, 14–15 Technology, 32–7, 46–7, 181–2 Theory of constraints (TOC), 43 Throughput Accounting (TA), 3, 4, versus activity-based costing, 41–4 Total quality management (TQM), 36, 85 Traditional companies, 87–8 Transfer pricing, 136, 146 Transport costs, 78 Trend analysis, 201–2 Uniform costing, 15–17, 19 Sales, 78, 140, 141, 142–3, 145 SAP system, 88 Segmental/comparative analysis, 168, 169–71, 172, 186–7 current month/year-to-date, 169–71 design for, 169 Standard costing, 11, 12, 20–2, 52, 85, 135, 184 actual costs explicitly reported, 90–1 actual costs implicitly reported, 91–2 actual labour/overhead costs, 92–3 changing financial systems, 102–3 combined with contribution, 108–13 combined with gross profit/margin, 117–20 comment, 101 conclusions, 103–4 content, 89–90 Variable cost variances, 183 Variable costing, 44, 51–2 Variable overhead, 97 Variable production costs, 78 Variable selling costs/transport costs, 78 Variance analysis, 94–5, 97–8, 184–5 fixed overhead, 97 labour, 96 materials, 95–6 variable overhead, 97 Variances, 22–5, 92–3, 184 integrated into financial reporting, 94 limited use, 200 Volume-based overhead absorption rates, 129 Wholesalers, 86–7 Author Index This Page is Intentionally Left Blank Ahmed, M N., 17, 18, 19 Ahrens, T., 53 Armstrong, P., 3, 25, 27 Hoolihan, J B S., 35 Horngren, C T., 31 Humphreys, E N., 27–8, 30 Bost, P J., 49 Boyns, T., 12 Bright, J., 4, 51 Brignall, S., 53 Brimson, J., 38, 39, 200 Burlingame, L J., 35 Innes, J., 51, 65 DeCoster, D T., 49 Dent, J., Dixon, S., 30 Drury, C., 25, 32, 50, 52, 81, 85, 183, 184, 185 Dugdale, D., 3, 5, 45, 64, 65, 66, 130, 134, 190, 192, 205 Edwards, J R., 12 Elbourne, E T., 17 Emerson, H., 22 Kaplan, R S., 3, 7, 11, 12, 19–20, 22, 28, 33, 36, 37–8, 39, 41, 44–8, 51, 81, 190–2, 193 Kilvington, K W., 17 Kuhn, T S., Lawrence, F C., 27–8, 30 Lee, R S., 35 Lilly, R T., 33, 46 Loft, A., 17, 18 Longman, D R., Lyne, S R., 53 Mackison, G., 34 March, A., 37–8, 41 Matthews, D R., 29 Miller, P., Mitchell, F., 16, 19, 51, 65 Fells, J M., 5, 12–13 Friedman, A L., 53 O’Leary, T., Garcke, E., 5, 12–13 Garner, S P., 13, 14 Glover, G R., Goldratt, E M., 42–4, 51 Graham, D., 36 Renold, C., 15 Renold, H., 15 Robinson, M A., Roslender, R., 57 Roxburgh, J G., 34 Harris, F T P., 36 Harris, J N., 25, 27 Harrison, G C., 20–2, 25 Hart, S., 57 Hazell, W H., 17 Sandretto, M J., 49 Scapens, R W., 17, 18, 19, 52 Schiff, M., Smith, D., 43 Solomons, D., 15–16, 19, 20, 133–4 Author Index Carter, R N., 5, 19 Chappell, H P., 34 Church, A H., 14–15, 17, 20, 21 Clark, J M., 31–2 Coneron, P., 35 Cooper, R., 37, 41, 45, 49 Cox, J., 42 Crowcroft, P K., 35 Johnson, H J., 3, 7, 11, 12, 19–20, 22, 28, 33, 37, 39, 47–8, 51, 81, 190–1, 193 Johnson, H T., 41 Jones, T C., 3, 5, 45, 64, 65, 130, 134, 190, 192, 205 Joseph, N., 52 229 Tayles, M., 50, 52, 81 Taylor, F W., 15 Author Index Walker, S P., 16, 19 Weiss, 37 230 Wheldon, H J., Williams, R G., Witham, R M., 36 ... Contemporary Practices in UK Manufacturing Accounting project.2 The aim of the project was to investigate internal management accounting reports in UK manufacturing companies The study investigated whether... cost accounting practices in the 41 companies investigated These practices include absorption costing, marginal costing, standard costing, activity-based costing, budgeting and forecasting It.. .Contemporary Management Accounting Practices in UK Manufacturing David Dugdale Department of Accounting and Finance University of Bristol T Colwyn Jones