ABSTRACT: The expected value of information is an important concept in cost and managerial accounting. Quite often students have difficulty integrating and applying statistical techniques to accounting problems. Contributing to this difficulty is the occasional lack of standardization of terms in the two disciplines. This article describes an approach which introduces information economics to managerial and cost accounting classes, Included is an Appendix which can serve as the basis for a classroom presentation by the instructor or which can be reproduced and distributed to students.
ABSTRACT: This paper examines and clarifies the applicability of APB Opinion No. 29 to (1) "trade-in" transactions that involve a dealer, and (2) exchange transactions that involve a "significant" amount of monetary consideration (boot). Principal findings are: The APB intended that the exception to the general accounting rule (as reflected in paragraphs 21 and 22 of the Opinion) apply to exchanges of similar nonmonetary assets only in instances where both parties to the transaction are either (a) dealers or (b) non-dealers. If an exchange involving similar nonmonetary assets results in the culmination of an earnings process for either party, the general rule applies to both parties. In addition, the Board's intent was that the exception to the general rule should apply to exchanges of similar nonmonetary assets irrespective of the amount of monetary consideration involved in the transaction.