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Grenzplankostenrechnung (GPK), which roughly translates to 'flexible standard costing,' is one of the most widely used costing systems in Germany and other European countries and is best described as a [...]

The white-hot glare of media, public, legislative, and legal scrutiny has created media frenzy over the corporate malfeasance of several large, very successful firms. The finger pointing, for example, among [...]

No company aspires to become the next poster firm for its lack of ethics. Although much debate has swirled around the topic of corporate ethics, few studies have focused on [...]

What would be the impact of mandatory continuing education for general members of the Institute of Management Accountants? At present, holders of the Certified Management Accountant (CMA) designation have a [...]

How do candidates prepare for the Certified Management Accountant exam? To find out, the CMA Review Programs Subcommittee, with the cooperation of the Institute of Certified Management Accountants, surveyed candidates [...]

A survey of 326 managerial accountants and an additional 264 people designated as controllers was conducted to ascertain the prevalence of corporate codes of conduct and the effect of formal codes of conduct on ethical behavior in light of the recommendations of the Treadway Commission. Many respondents to the survey revealed that they were under pressure to achieve a targeted net income and return on investment (ROI). Surprisingly, the pressure to achieve a targeted net income and ROI was higher in firms with formal codes of conduct than in those firms without formal codes: over half of respondents from firms with formal codes of conduct reported experiencing pressure to achieve a net income figure as compared to 34% of those without formal codes, while 51% of those with formal codes reported experiencing pressure to achieve a specific ROI, compared to 27% of those in firms without a formal code. Survey results reveal that 55% of respondents felt that hiding negative information from internal auditors was difficult, while 61% felt that hiding negative information from outside auditors was not difficult.

A National Association of Accountants membership survey on ethics in management accounting examines whether accountants are tempted by or succumb to unethical financial practices. The degree of pressure depends on four job characteristics: job title and years of experience; working for a publicly held or private company; corporate versus divisional level responsibilities; and impact of professional certification. Those with professional certifications generally feel less pressure. Divisional managers feel more pressure to materially alter financial statements than do corporate managers. Private companies put less pressure on accountants than do publicly held ones. Upper managers generally feel some pressure, middle managers the most, and lower managers a little.

The article discusses aspects of the Grenzplankostenrechnung (GPK) cost accounting system. The practice roughly translates to "flexible standard costing." GPK is one of the most widely used costing systems in Germany and other European countries. Analysts describe GPK as a direct or variable costing system.

The article mentions corporate malfeasance and focuses on a new accounting-education model proposed by the Institute of Management Accountants (IMA) that will develop an entry-level professional with an ethical perspective. The IMA semester course and credit-hour model is adaptable to the expectations of the Association to Advance Collegiate Schools of Business (AACSB), as well as specific accounting programs and business college requirements. INSET: IMA'S Curriculum Model.