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Chief Financial Officers, Comptrollers, Treasurers, Term Paper

The ABC system uses a much larger number and variety of cost drivers than the one or two volume-based cost drivers typical for a traditional cost system. As a result, the ABC method has increased accuracy. In contracts, it is explained that a traditional cost system uses only volume-based cost drivers, such as direct labor and machine hours, and ignores the key role of support activities, such as number of setups and design changes, in producing many modern products and services. Such volume-based cost drivers often lead to one group of products subsidizing another group of products. These subsidies often create the appearance that one group of products is highly profitable, adversely affecting the pricing and competitiveness of another group of products. In a highly competitive environment with complex products and services, accurate cost information can be critical to sound planning and decision-making. (Cook, Grove & Coburn, 2000, p. 305)

Vargas (2006) describes that an endowment is an investment that provides endless support to charitable causes. It is an investment in the future. Endowments are permanent. They are funds with the requirement that the principal is never spent. The balance in these funds is invested, earning income that is then spent to support charitable works in perpetuity. He concludes by discussing the three types of endowment to choose from Endowment for the Common Good, Field of Interest Endowment, and Designated Endowment. 1.) an Endowment for the Common Good is a gift that allows a foundation to respond to the constantly changing needs of its region. This type of fund is not limited to a specific cause, but available for the most critical needs of the community as they arise. 2.) a Field of Interest Endowment is a gift that helps sustain programs or organizations in specific areas of interest. These programs and organizations are selected by the donor and reflect his or her passion in areas such as education, health and human services, the arts, historic preservation and environmental protection, to name a few. 3.) a Designated Endowment is a gift that provides a permanent source of support to a nonprofit organization selected by the donor

Kirkegaard...

It is defined as having a direct relationship with the action of "paying." Enterprises or individuals are said to be liquid at a moment or within a period when they are able to pay their due debts now or within the period concerned. Payment can be made either in cash or by using references to cash. The daily language of accounting contains expressions such as "liquid capital" or simply "liquidity," terms that simply refer to means of payment that are easily accessible. In practice, "liquid capital" and "liquidity" can have three and only three forms. The ability to pay can be demonstrated by the presence of means of payment in the form of: cash holdings, deposits in bank accounts of various kinds, and prearranged rights to draw on credits of various kinds.
The concept of illiquidity is simply the logical negation of the concept of liquidity. You are illiquid when you cannot pay your debts at a given moment or within a given period. The transition from a state of liquidity to a state of illiquidity that is more than just temporary is stated in the familiar (and for most interested parties unpleasant and fatal) expression "X has suspended payments." (Kirkegaard, 1997, pp. 41-43)

Reference

Bresnahan, K.M. (2000). Investments in Human Capital: A Crisis for Financial Managers. The Public Manager, 29(2), 9.

Cook, T.J., Grove, H.D., & Coburn, S. (2000). ABC Process-Based Capital Budgeting. Journal of Managerial Issues, 12(3), 305.

Kirkegaard, H. (1997). Improving Accounting Reliability: Solvency, Insolvency, and Future Cash Flows. Westport, CT: Quorum Books.

Moreno, J.D. (Ed.). (1991). Paying the Doctor: Health Policy and Physician Reimbursement. New York: Auburn House.

Netterville, J.L., & Dennis, a. (1996). Political Campaigns: The Treasurer's Role. Journal of Accountancy, 181(4), 39+.

Trampe, J. (1998). Thriving on Change: The Internal Auditor's Role in Mergers and Acquisitions. Journal of Accountancy, 185(4), 33+.

Vargas, a. (2006). The San Diego Foundation. What is Endowment, p.1.…

Sources used in this document:
references to cash. The daily language of accounting contains expressions such as "liquid capital" or simply "liquidity," terms that simply refer to means of payment that are easily accessible. In practice, "liquid capital" and "liquidity" can have three and only three forms. The ability to pay can be demonstrated by the presence of means of payment in the form of: cash holdings, deposits in bank accounts of various kinds, and prearranged rights to draw on credits of various kinds.

The concept of illiquidity is simply the logical negation of the concept of liquidity. You are illiquid when you cannot pay your debts at a given moment or within a given period. The transition from a state of liquidity to a state of illiquidity that is more than just temporary is stated in the familiar (and for most interested parties unpleasant and fatal) expression "X has suspended payments." (Kirkegaard, 1997, pp. 41-43)

Reference

Bresnahan, K.M. (2000). Investments in Human Capital: A Crisis for Financial Managers. The Public Manager, 29(2), 9.

Cook, T.J., Grove, H.D., & Coburn, S. (2000). ABC Process-Based Capital Budgeting. Journal of Managerial Issues, 12(3), 305.
Vargas, a. (2006). The San Diego Foundation. What is Endowment, p.1. Retrieved 11/17/07, at http://www.sdfoundation.org/endowment
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