Summer 2007


Table of Contents



Carbon Cost Accounting: The Impact of Global Warming on the Cost Accounting Profession

By Janek Ratnatunga


With the advent of the ratification of the Kyoto Protocol by most of the world, including recently, Australia, business entities need to consider issues such as trading in carbon allowances (or permits), investment in low- CO2 emission technologies, counting the costs of carbon regularity compliance and passing on the increased cost of carbon regulation to consumers through higher prices. Such considerations require information for
informed decision making, thus the need for cost accounting and cost management techniques and measures is evident.

It is demonstrated in this paper that the information from the strategic cost accounting systems will be particularly useful in this new carbon-economy, especially in evaluating the ‘whole-of-life’ costs in terms of carbon emissions relating to products and services.

This paper reports on a research study that was conducted to study the impact of the Kyoto protocol on cost accounting and cost management.


Kyoto Protocol, Global Warming, Carbon Cost Accounting, Life Cycle Costing, Whole-of-Life Costs, Product-Distance


Classifying Controllers by Activities: An Exploratory Study

By Bernard H.J. Verstegen , Ivo De Loo , Paul Mol , Koos Slagter and Hendrik Geerkens


The goal of this paper is to discern variables (triggers) that affect a
controller’s role in an organisation. Using survey data, groups of controllers are distinguished based on coherent combinations of activities. We find that
controllers either operate as so-called ‘information adapters’ or ‘watchmen’.
Whether someone is bound to be an information adapter or watchman is mainly affected by personality traits and someone’s experience in finance and accounting. This research can help to shape the controller function in organisations in such a way that the ensuing activities are manageable and
do not contradict one another. Another contribution of this research is that an empirically informed framework that overcomes various conceptual
disagreements in the literature is generated that can be used for the future testing of hypotheses.


Controllers, Management Accountants, Classifications, Roles Activities, Surveys

Transfer Pricing Policy and Performance Measurement Used in Poland by Domestic and Multinational Companies

By Slawomir Sojak


The article presents basic problems relating to the transfer-pricing policy of companies operating in Poland, where increasing attention is being paid to minimising taxation liability. Transfer-pricing policy constitutes a multi-factorial problem of an interdisciplinary character comprised of such disciplines as finance, tax law, accounting, management, marketing, international business, investment, and others. The main emphasis of this article is
on the management and accounting implications of transfer prices. These
problems involve transfer pricing in decentralised and related companies—both domestic and multinational. In Poland, the application of the law to transfer pricing arrangements between domestic entities is of particular interest as it is usually only multi-national transactions that are regulated in most other countries. The study enumerates the criteria and conditions of
the application of transfer prices, and the basic formulae for shaping them. This is the first time that research of this type has been conducted in Poland.


Transfer-Pricing, Transfer-Pricing Policy, Responsibility Accounting, Performance Measurement

The Construction of a Segmental Customer Profitability Analysis

By Lisa McManus


This paper presents the construction of a geographically segmented Customer Profitability Analysis (CPA). The CPA was developed as a unique solution to a managerial problem: are there differences in the profitability of customers living in different geographic segments? The construct presented here applies the principles of activity based costing and an innovative
segmentation model. The results were derived from a case study applying the constructive research approach in an Australian Telecommunications company.

Customer Profitability Analysis, Constructive Theory, Case Study, Telco Profitability Analysis


Modelling Corporate Collapse: Definitional Issues of the Collapse Event

By Ghassan Hossari

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