Measurement in Accounting Scope And Setting
Measurement in Accounting Scope And Setting
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Unless we provide the manager with information which is addressed to this cause and effect and help him derive better and better relationships between inputs and outputs, we cannot hope to influence his behavior because the premises for a feedback control system for motiva- tion will not be there in the absence of these relationships. This latter type of an accounting system which provides information on cause and effect and on an a_ posteri basis analyzes the results of operations in order to ...find out how consistent these are with the postulated prior functional relationships, we have elsewhere called a functional accounting system L4j.
Quantitative rules of effectiveness of accounting measurements and in- ternal controls will no doubt exist. These quantitative rules, however, will refer to the sensitivity of managerial decisions to such quantitative indices. What in effect we are saying here, is that although in many situations the signal will be the important thing and not the particular refinement of the measure, yet in order to determine what is important and what is not for focusing attention by turning on the signal, one must decide where the cut-off point is.
What to read after Measurement in Accounting Scope And Setting?
You can find similar books in the "Read Also" column, or choose other free books by Zenon S Zannetos to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
Unless we provide the manager with information which is addressed to this cause and effect and help him derive better and better relationships between inputs and outputs, we cannot hope to influence his behavior because the premises for a feedback control system for motiva- tion will not be there in the absence of these relationships. This latter type of an accounting system which provides information on cause and effect and on an a_ posteri basis analyzes the results of operations in order to ...find out how consistent these are with the postulated prior functional relationships, we have elsewhere called a functional accounting system L4j.
Quantitative rules of effectiveness of accounting measurements and in- ternal controls will no doubt exist. These quantitative rules, however, will refer to the sensitivity of managerial decisions to such quantitative indices. What in effect we are saying here, is that although in many situations the signal will be the important thing and not the particular refinement of the measure, yet in order to determine what is important and what is not for focusing attention by turning on the signal, one must decide where the cut-off point is.
What to read after Measurement in Accounting Scope And Setting?
You can find similar books in the "Read Also" column, or choose other free books by Zenon S Zannetos to read onlineMoreLess
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