Revenue Management

You are here: Home : Topics A-Z : Revenue Management

Debating Inflation

Will rising price levels be the next plague to hit Corporate America?

March 1, 2010

Just as the economy seems to be creeping back to health, a new study by McKinsey & Co. offers finance executives a fresh concern: inflation.

While various commodity prices have spiked over the past few years, the authors argue that low interest rates and high government spending could spark a rise in prices across the board. If the general price level were to increase by an extreme, albeit unlikely, amount — say, 10% to 15% — simply passing along rising costs to customers wouldn't keep a company in good health, say study co-authors Marc Goedhart, Timothy M. Koller, and David Wessels, all in the consulting firm's corporate finance practice. Read more...

Follow this topic

Sign up for newsletters
Subscribe to our Revenue Management RSS feed

More Revenue Management Articles

Your Loss Is Your Gain
Uncle Sam has extended the time frame for loss carrybacks. Should you take advantage? March 1, 2010
Obama Budget to Spark Tax Debates
President Obama's proposed 2011 budget is replete with tax proposals, many that are "hostile" to business. Here's a breakdown of the potential changes. February 16, 2010
E*Trade's Debt Swap Triggers Ownership Change
The online-trading hub triggers a technical change of ownership by swapping out its debt. But it should be able to hang on to its long-term tax benefits. December 7, 2009
How to Repatriate Earnings Tax-Free
Three pieces of IRS guidance issued over the past year provide a roadmap for corporate taxpayers. November 2, 2009
New Revenue-Recognition Rules: The Apple of Apple's Eye?
The computer company and other tech outfits are likely to cash in on revenue-recognition changes if the new regs take on an international flavor. September 16, 2009
GE Settles Accounting Fraud Charges
In a blow to its reputation as a finance paragon, GE settles SEC fraud claims related to hedge accounting and revenue recognition. August 4, 2009
The Carbon Effect on Earnings, M&A
Proposed energy legislation will have direct and indirect consequences on the revenues, profits, and M&A transactions of heavy CO₂ emitters. July 6, 2009
PCAOB Rips E&Y on Revenue Recognition
Two of Ernst & Young's clients had to restate financial results after the accounting-firm overseer found departures from GAAP. May 27, 2009
Sun Goes Down on Solar Company Execs
The CEO and CFO of a bankrupt solar products company settle fraud charges with SEC. March 10, 2009