A substantial accounting research literature seeks to explain the existence of alternative accounting methods and management's willingness to expend efforts lobbying to defend alternate methods. This paper investigates the association between management lobbying on accounting for oil and gas producing activities and the effect that the method may have on firm cash flows and on accounting numbers that are restricted by the terms of firm contracts, Full cost companies that lobbied at different stages of the deliberations on oil and gas accounting are compared with those that did not. The models and their classificatory success rates were statistically significant. Also, the models developed at each stage of the rule-making process provided statistically significant predictions for the other stages. This suggests that the contract and cash flow effects were stable predictors of lobbying by managers.

[A substantial accounting research literature seeks to explain the existence of alternative accounting methods and management's willingness to expend efforts lobbying to defend alternate methods. This paper investigates the association between management lobbying on accounting for oil and gas producing activities and the effect that the method may have on firm cash flows and on accounting numbers that are restricted by the terms of firm contracts. Full cost companies that lobbied at different stages of the deliberations on oil and gas accounting are compared with those that did not. The models and their classificatory success rates were statistically significant. Also, the models developed at each stage of the rule-making process provided statistically significant predictions for the other stages. This suggests that the contract and cash flow effects were stable predictors of lobbying by managers.]

Reviews the book "The Evolution of Consolidated Financial Reporting in Australia," by Greg Whittred.

Differences in faculty beliefs as to the economic function of accounting, doctoral programs may contribute to the heterogeneity of educational policies and practices that exist across programs. Many accounting doctoral program policy makers appear to adhere, explicitly or implicitly, to either the "human capital" or "screening" theories of occupational licensing/certification. This study compares these two theories and evaluates the educational policies and practices they imply. The analysis suggests that, when relied upon to provide perspective in resolving policy questions, rather than in an orthodox fashion, these theories can provide useful guidance to accounting doctoral program policy makers.

[Differences in faculty beliefs as to the economic function of accounting doctoral programs may contribute to the heterogeneity of educational policies and practices that exist across programs. Many accounting doctoral program policy makers appear to adhere, explicitly or implicitly, to either the "human capital" or "screening" theories of occupational licensing/certification. This study compares these two theories and evaluates the educational policies and practices they imply. The analysis suggests that, when relied upon to provide perspective in resolving policy questions, rather than in an orthodox fashion, these theories can provide useful guidance to accounting doctoral program policy makers.]

This article continues the five-year review of cost accounting on the Uniform CPA Examination. It also compares the historic weighting of Cost Questions to the proposed weighting presented in the Exposure Draft of the AICPA Board of Examiners entitled "Proposed Content Specification Outlines for the Uniform Certified Public Accountant Examination."

Reviews the book "West's Federal Taxation: Corporations, Partnerships, Estates and Trusts," edited by William H. Hoffman.

Reviews the book "Overhead: What It Is and How It Works," by Jack F. Fultz.

Oftentimes statistical sampling techniques are confusing to students. Contributing to this confusion are different approaches taken for the same technique without any reconciliation of the approaches. Two seemingly different approaches taken to include β risk in the determination of sample sizes for variables sampling plans have been proposed in the accounting literature and in auditing texts. The purpose of this article is to prove mathematically the equivalency of these two approaches for controlling β risk and to provide a derivation of the sample size formula using auditing terminology. The article concludes with a case suitable for classroom presentation. Such a demonstration will aid accounting and auditing instructors in presenting a topic that is often confusing to students as well as promote increased understanding of β risk and its control.

Once a taxpayer's taxable income has been determined there are three possible methods of determining income tax liability: (1) the regular method using the appropriate tax schedule, (2) income averaging, and (3) maximum tax. This paper presents a method of explaining these methods by means of tax layers which greatly facilitates student comprehension. A notational method is also suggested which facilitates testing of these concepts. Demonstration of the source of tax savings also facilitates student comprehension.