Title Supply Chain Management Accounting
Subtitle Managing Profitability, Working Capital and Asset Utilization
Author Simon Templar
ISBN 9780749472993
List price GBP 34.99
Price outside India Available on Request
Original price
Binding Paperback
No of pages 392
Book size 153 x 235 mm
Publishing year 2019
Original publisher Kogan Page India Private Limited
Published in India by .
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
About the book


“Supply chain decisions, such as sourcing globally, investing in a new manufacturing facility, reducing inventory levels, or redesigning a transport network, have a profound impact on financial performance. However, decision makers rarely understand the full impact of these decision on their own firms, their supplier, and their customers. In this book, Dr. Simon Templar relies on his extensive practical experience and his academic expertise to build bridges between supply chain management and accounting. Whether you are an accountant or a supply chain practitioner, if you want to learn how to get the best financial results out of your supply chain, this book is for you.”

Carlos Mena, Nike Professor of Supply Chain Management, Portland State University, USA

“The book highlights that supply chain management (SCM) is much more than operational decision-making, demand planning or logistics execution. The work demonstrates impressively that SCM also affects financial variables such as sales revenues, net working capital or asset utilization. The book perfectly emphasises the very important but often neglected interfaces between operations and managerial accounting. The book serves both as a basis for newcomers to this field as well as compendium for specialists for a more in-depth examination of the operations-finance-relations.”

Prof. Dr. Erik Hofmann, Director, Institute of Supply Chain Management, University of St.Gallen, Switzerland


The need to contain costs across the business is as strong as ever and the search for cost reduction opportunities is intensifying. There still remains one last major opportunity to take out costs - through the supply chain. Ultimately all costs will make their way to the final marketplace to be reflected in the price paid by the end user. Smart companies instead seek to make the supply chain more competitive through the value it creates and the costs it reduces overall. They have realised that the real competition is not company against company but rather supply chain against supply chain.

Supply Chain Management Accounting looks at how the evolution of supply chains has been dramatic over the last few years, with more and more companies moving to sourcing overseas, distributing finished goods to overseas markets, and increasing their international operations. The seeking of low-cost country sourcing, optimizing manufacturing, and exporting products and services has created new challenges to demand forecasting and supply chain planning. Supply Chain Management Accounting presents a wide range of approaches and ground-breaking research findings. The book covers profitability, liquidity and asset utilisation, product costing, activity-based costing, investment appraisal, customer profitability analysis, budgeting and sales and operations planning. Online supporting resources include invaluable study questions and worked solutions to reinforce the learning as well as multiple-choice questions with solutions and PowerPoint activities.


Chapter 1: Introduction

Chapter 2: The income statement • Aim and objectives • The income statement • Revenue • Cost of sales • Inventory and the income statement • Inventory valuation methods • Operating expenses • Net finance costs • Earnings before tax • Taxation, earnings after tax, dividends and retained earnings • Porter’s income statement • SC management and profitability • Summary • References • Solutions to the activities • Study questions

Chapter 3: The balance sheet • Aim and objectives • Debits, credits and account types • Accounting equation • The balance sheet • Assets • Liabilities • Working capital • Equity • Financial ratios and the balance sheet • Supply chain decisions on the balance sheet • Balance sheet case study • Summary • References • Solutions to the activities • Study questions • Study question solutions

Chapter 4: Cash and working capital management • Aim and objectives • The importance of cash in business • The cash flow forecast • The cash-to-cash cycle • The relationship between liquidity and cash flow • Supply chain management and supply chain finance • Summary • References • Solutions to the activities • Study questions • Study question solutions

Chapter 5: An introduction to depreciation • Aim and objectives • Smoke and mirrors • Revenue and capital • Depreciation methods • Disposal of an asset • Depreciation practice in the supply chain • Earnings before interest, taxes, depreciation and amortization (EBITDA) • Summary • References • Solutions to the activities • Study questions • Study question solutions

Chapter 6: Supply chain management and financial performance • Aim and objectives • The role of the supply chain • Return on capital employed • EBIT percentage and NCA + WC turnover • Case study: Qwerty Ltd • Supply chain management and ROCE • Supply chain management financial ratios • EBIT after asset charge (EAC) • Summary • References • Solutions to the activities • Study questions • Study question solutions

Chapter 7: Marginal costing • Aim and objectives • Different types of cost • Break-even analysis • Limiting factor analysis • Inventory valuation • Practical applications of marginal costing in supply chains • Summary • References • Solutions to the activities • Study questions • Study question solutions

Chapter 8: Absorption costing and variance analysis • Aim and objectives • The need for full costing • Margin vs. mark-up • Absorption costing • Cost units and cost centres • Allocation, apportion and absorption • Absorption costing case study • Standard costing and variance analysis • Supply chain implications • Summary • References • Solution to the activities • Study questions • Study question solutions

Chapter 9: Contemporary costing methods • Aim and objectives • Activity-based costing (ABC) • Total cost of ownership • Target costing • Other contemporary costing methods • Summary • References • Solutions to the activities • Study question • Study question solution

Chapter 10: To invest or not to invest, that is the question • Aim and objectives • Revenue and capital expenditure • Shareholder value • Capital investment appraisal • Opportunity cost • Case study: warehouse management system upgrade • Equivalent annualized cost • Practical applications of investment appraisal in supply chains • Summary • References • Discount factor tables • Solutions to the activities • Study questions • Study question solutions


About the Author:

Simon Templar is a qualified accountant with 20 years’ industry experience as well as a Lecturer at the Centre for Logistics and Supply Chain Management at Cranfield School of Management.

Target Audience:

Useful for people interested in operations-finance-relations, like corporates, accountants, supply chain practitioners etc.


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