Objectives of Financial Statements-the Trueblood Report, Accounting, Cooperation, Accounting problems

Hence, even if the partial equilibrium analyst knows full well that the actual situation is not really a competitive one, he probably will still make a first try using the competitive model with good old-fashioned profit maximization. And if the results appear too odd, appropriate qualifications may still be able to take care of them more simply than if he had started with a cumbersome managerial model. (In saying this, I am showing my bias.) [18, p. 30]

Introduction, 112. — Theory construction (model building), 113. — General characteristics of computer models, 115. — Comparison of computer models with operations research simulations and econometric models, 117. — Methodological problems of computer models, 119. — Review of the literature, 121. — Future of computer models, 126.

In recent years it has become increasingly evident that many managerial problems could be best handled by an integrated application of accounting and statistical knowledge. The actual integration of these two disciplines in the business world has been progressively increasing. Applications of statistical and sampling techniques have been made to a number of accounting problems. In the area of accounts receivable, applications have been made to the confirmation of receivables and to the aging of receivables. In contrast one of the first steps required in making a statistical application is the specification of the desired precision of the estimate and the level of reliability needed. Precision and reliability are the basis for the application of statistical sampling and these quantities must be stated by the accountant desiring the information. In another type of application statistical sampling was used in lieu of a cost accounting system. A large number of products were manufactured with the same machinery and same individuals during the day. A conventional cost accounting system would have been prohibitively expensive.