Planning and control systems for leases within the local small business setting

Abstract

This dissertation presents and evaluates some important aspects of the planning and control systems within the local leasing industry by virtue of detailed interviews conduced with the management of three local leasing firms, each of which deals in a different market. Leasing companies differ from manufacturing companies in the nature of the product these offer: manufacturers produce goods; lessors generally provide a service. Even lessors vary one from another, both in nature and scope: a leasing company may be selling goods apart from leasing assets. In this case, management accounting and control procedures have to differentiate between a lease and sale transaction. To complicate matters, most lessor firms offer maintenance and repair service, subject to specified contractual terms. This dissertation scrutinises the financial and physical planning and control procedures encountered within the cost/revenue cycles of the local leasing industry and satisfying the good practice qualification as required by an ever more demanding management.