Battle at the GAAP? It's time for a change
Article Abstract:
The revolution in manufacturing wrought by new technology necessitates a new cost accounting model that is congruent with the phenomenon of decreased inventory levels inherent in just-in-time manufacturing philosophies. Traditional cost accounting approaches do not adequately account for overhead or labor. Overhead now is seen to be the most significant product cost and labor now is seen as an indirect cost. To eliminate difficulties in cost determinations stemming from traditional accounting methods, the profession needs to adopt new methods of product cost accounting under Generally Accepted Accounting Principles (GAAPs). The new GAAPs should reflect the impact of new methods of accounting, activity, technology, and life-cycle accounting methods, that have been developed to account for the new manufacturing costs environment.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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Advanced manufacturing technologies: what they can offer management accountants
Article Abstract:
The data needed by advanced manufacturing technologies (AMT) is different than that used by traditional accounting and management information systems (AMIS). Manufacturing decision-makers require information related to the cost impact of their decisions while accountants and auditors need to be able to verify the validity of data generated by the manufacturing process and communicate to management whether the manufacturing process is under control. Joint data collection and control methods with built-in audit controls will have to be developed to enable manufacturing and accounting to use an integrated data base. Integrating the diverse data of AMT and AMIS could be affected through use of a knowledge-based system that verifies data generated by AMT before it is incorporated into the AMIS.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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The bad and the good of experience
Article Abstract:
There is both a good and bad side to the experience of managerial accountants. The bad side of experience is that it creates an innate conservatism that makes practitioners reluctant to adopt new ideas. Practicing accountants are more conservative than accounting faculty because of their lack of exposure to new accounting ideas. The good side of experience is that it allows the managerial accountant to separate good and useful accounting practices from fads. Lacking a sphere for empirical experimentation, the profession relies on experienced practitioners to endorse the validity of new ideas.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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