Truth in Lending

Federal law requires a lender to disclose the annual percentage rate, the finance charge, the amount financed and the total of payments, in a prescribed format, before the borrower signs. The disclosure is standardized so it can be compared across lenders. The borrower is not expected to know what to ask.

Whistleblower bounties

The Dodd-Frank Act directs the SEC to pay a person who voluntarily provides original information leading to a successful enforcement action a share of the money recovered, where sanctions exceed a million dollars. Not protection from retaliation, though that exists too. Payment. The law attaches a financial reward to pushing information out.

Consultants

American corporations spend heavily on external advisers who arrive, learn the business, produce recommendations, and leave. A recurring complaint inside those companies is that the consultants are selling back knowledge the firm once had. The complaint is often accurate, and the spending continues.

Own-costs

Own-costs. The German term for what a thing costs the producer before any margin, and it appears in ordinary commercial speech as well as in accounting.

Zu Selbstkosten abgeben — to hand something over at own-cost — is a specific and meaningful statement in German business. It names an exact point on a scale everyone is assumed to know exists.

Graded by the task

German collective agreements set Entgeltgruppen — pay bands graded by the task rather than by the person. The description of the role determines the band. Promotion means being assigned different work, and the money follows the work rather than the individual.

Cost accounting as a discipline

Kostenrechnung. German business education treats cost accounting as a discipline in its own right, with its own vocabulary and its own exams, distinct from financial accounting. Selbstkosten, own-costs. Deckungsbeitrag, contribution margin. Zuschlagskalkulation, overhead absorption. The tradition assumes a price is built upward from documented inputs, and teaches the building.

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