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- Title
"But Are my Finance Costs Typical?".
- Authors
Hackett, Greg
- Abstract
The article focuses on the finance function in corporations, which in the average organization is about 1.4 percent of its annual revenues. Finance costs include processing basic transactions in accounting, management reporting, budgeting and tax analysis, wage and benefit expenditures, financial management systems, and other expenses such as facilities and suppliers. A study by Hackett Group found that a global manufacturer was able to reduce finance costs to 0.36 percent of its revenue by using best practices and maintaining a high level of service. Data shows finance costs in relation to business size for the years 1994 and 1997. Manufacturing companies have lower costs due to value added and service companies have higher costs due to small-value transactions.
- Subjects
FINANCE departments; WORLD class companies; BEST practices; VALUE added (Marketing); HACKETT Group Inc.; SURVEYS
- Publication
Financial Executive, 1998, Vol 14, Issue 4, p44
- ISSN
0895-4186
- Publication type
Article