This article examines the effects of alternative planning models and accounting variance analysis techniques on a firm's profit and sales performance. Two multiple objective product-mix models, a satisficing goal programming model and an optimizing multiple objective linear programming model, are developed within an uncertain demand situation. Two accounting control systems, a traditional standard cost variance analysis and an ex post variance analysis, are also investigated. A computer simulation experiment is conducted, and F-tests, as well as a multiple-ranking procedure, are used to analyze the simulated results. The simulation results show that profit and sales under multiple objective linear programming are higher than those under goal programming. When comparing ex post variance analysis with traditional variance analysis, the former results in hgher sales, but there is no significant difference in profits. Possible reasons for this is explored and a sensitivity analysis was conducted.

The article focuses on methodology of financial accounting. In recent years, a number of accounting theoreticians have begun to attempt to apply the methodology of theory construction and confirmation in sciences to financial accounting. The impetus for these efforts probably was the desire to develop a theory or theories of accounting, which has the explanatory, the predictive and the descriptive powers of theories of sciences. In any case, these pioneering efforts have identified an inextricable link between theory construction and confirmation and measurement theory. The purpose of the paper is to appraise the validity of the ratio-scale view. The next section of the paper contains an overview of the analysis and the third subdivision of the paper provides a detailed analysis of the logic of this viewpoint. The final section provides conclusions concerning the future development of accounting theory, which are based on the examination of the ratio-scale view. The importance of the connection between theory construction and confirmation and measurement theory implies that accountants need to explore thoroughly the relationship between the numerical assignments of extant accounting systems and requirements of measurement theory.

This paper presents special forms of the learning model relevant to production situations in which staffing levels constrain production for both the cumulative average case and the marginal average case. They are applicable to planning profits and cash flows and to the capital budgeting decision under simplifying assumptions about demand and working capital. In a later section. these forms have been modified to permit direct observation of effects of errors in learning model parameter estimates on profits, cash flows and internal rate of return.

This article focuses on the impact changes in accounting procedures for the cost of interest on a firm's finance, with assessing implications of these changes in accounting procedures for three firms in the timber industry: Weyerhaeuser Co., Georgia-Pacific Corp., and Boise Cascade Corp. Because adequate data on new construction financing were not available, the analysis of the three companies, considering the proposed changes in accounting procedures, was confined to the following areas: the identification and used of an interest charge for shareholders' equity; computation of changes in the value of timberland inventory over a period of about 20-25 years and the corresponding changes in common shareholders' equity; and determination of changes in net income over the same period resulting from a higher value of depletion and the use of an interest charge for plant and equipment involved in the production process. On analysis, it was noticed that the effect of the changes was substantial. The reported value of the timberland account increased by more than 80 percent for Weyerhaeuser and by approximately 50 percent for the other two companies. Retained earnings increased by 17 percent in Boise Cascade, 30 percent in Weyerhaeuser and 60 percent in Georgia Pacific. Net income for the period studied was reduced considerably for each firm, actually becoming a loss for Boise Cascade.

Reviews the book "Disclosure of Forecasts."

Reviews the book "The Income Tax and Business Decisions," 3rd ed., by William L. Raby.

Reviews the book "Accounting in Scotland: A Historical Bibliography," by Janet Pryce-Jones and R.H. Parker.

Reviews the book "Personal Economic Planning," by Glen A. Mumey.

The article focuses on the hypotheses that there is a tendency for students to improve academically and to realize more fully the value of communication skills following their participation in an internship program. Participants in The Pennsylvania State University's 23-year-old program were used to test these hypotheses. Penn State has a large program with a wide geographical representation. Last winter 78 interns were placed among 16 firms in 19 locations. Altogether 45 offices were represented. Internship programs are part of the academic curriculum at an increasing number of schools. They provide an efficient way to involve students in real live situations. Students can apply and reinforce their classroom knowledge. Their periodic reviews help them to better understand their strengths and weaknesses. They can evaluate competing employment opportunities before making a permanent commitment. They show that there is a tendency for both accounting and general grades to improve following an internship.

Presents a reply to comments made by authors on a study about the usage and relationship between opportunity and incremental costs in accounting and economics. Definition of incremental cost.