Historical cost accounting Advantages • Historical cost accounts are straightforward to produce • Historical cost accounts do not record gains until they are realized • Historical cost accounts are still used in most accounting systems Disadvantages • Historical cost accounts give no indication of current values of the assets of a business • Historical cost accounts do not record the opportunity costs of the use of older assets‚ particularly property which may be recorded at a value based
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CONVERSATION: SUBTLE INFLUENCES ON MORAL DECISION MAKING BRIAN C. GUNIA Johns Hopkins University LONG WANG City University of Hong Kong LI HUANG INSEAD JIUNWEN WANG J. KEITH MURNIGHAN Northwestern University This research investigated the role of contemplation‚ conversation (conceptualized as social contemplation)‚ and explanation in right-wrong decisions. Several theories suggest that contemplation or morally oriented conversation will promote ethical decisions and that immediate choice or self-interested
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9.5 Manager’s Information Advantage 9.5.1 Earnings Management 9.5.2 Controlling Earnings Management 9.6 Discussion and Summary 9.7 Agency Theory: A Bondholder-Manager Lending Contract 9.8 Implications of Agency Theory for Accounting 9.8.1 Is Two Better Than One? 9.8.2 Rigidity of Contracts 9.9 Reconciliation of Efficient Securities Market Theory with Economic Consequences 9.10 Conclusions on the Analysis of Conflict Copyright © 2009 Pearson Education Canada
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different costing techniques • To understand the meaning of cost sheet In order to determine and take a dispassionate view about what lies beneath the surface of accounting figures‚ a financial analyst has to make use of different management accounting techniques. Cost techniques have a precedence over the other techniques since accounting treatment of cost is often both complex and financially significant. For example‚ if a firm proposes to increase its output by 10%‚ is it reasonable to expect total
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Accounting Professions Report In the field of accounting‚ there are three main professions that are highly in demand. The professions are 1) Chartered Accountants (CA) 2) Certified General Accountants (CGA) 3) Certified Management Accountants (CMA) Each of these professions requires special practice sessions‚ education‚ training‚ and loads of experience. Nationally and internationally these jobs are highly in demand for its standards and for its stature. Overall‚ this report will inform
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Cost Accounting: A Managerial Emphasis‚ EXHIBIT 11-1 Accounting Information and the Decision Process FIVE-STEP SEQUENCE Step 1: Gathering Information AN ILLUSTRATION The current manufacturing line uses 20 employees‚ 15 operating machines‚ and 5 handling materials‚ for a total cost of $640‚000. The rearrangement of the manufacturing assembly line is expected to eliminate materials-handling costs‚ equivalent to $160‚000. The cost of the rearrangement will be $90‚000. Historical
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The several approaches to accounting theory‚ 1. Deductive recur sing or “approach going from the general to the specific.” 2. Inductive approach ‘Going from the specific to the general.’ 3. The ethical approach of accounting theory places emphasis on the concept of justice‚ truth & fairness. This is particularly true of the ethical approach‚ for defining it of the separate approach does not necessarily imply that other approaches do not have ethical content‚ not does it imply that ethical theories
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Question: 1 Mini Project topic: Introduction to Management Accounting. You are the person in charge of the management accounting department of a manufacturing company. You are required to mentor your junior of the r staff on the essentials of the management accounting in the following areas: (Note: you may need to create an illustration to elaborate the following matters). (A) Explain how to cost can be classified by their behaviour‚ with particular reference to the effects both on total and
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Accounting numbers in business is a closely watched area these days largely in part to the bad financial decisions made by certain corporations. This all has happened over the past 10 years when large corporations were found to be fudging the numbers causing thousands and thousands of employees to lose everything when the company went under. The article chosen for this paper is about the importance of educating students on ethics in accounting. It was written by Susan Schott Karr in 2004‚ who frequently
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As the decision of where I will attend college next year quickly approached‚ I decided to investigate the major I have chosen‚ Accounting. Because my goal is to become a Certified Public Accountant (CPA)‚ I would like to know more of what it entails. Dealing with numbers‚ and recording and projecting the earnings of a company‚ accountants are placed with the responsibility of keeping track of the moneys of a business. God has blessed me with skills in the areas of mathematics and organization‚ which
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