Abstract The article illustrates the use of the term heuristics and thereby facilitate retention, and to provide an appreciation as to the limitations as well as the advantages of this approach to problem solving. Students of management and accountants concerned with computer technology and its application to the problems of business administration have probably seen the terms "heuristic" and "heuristics" in the literature used as an adjective and a noun. A heuristic model, written as a computer program, simulates the procedures used in choosing investment policies for accounts, in evaluating the alternatives presented by the market, and in selecting the required portfolios. Heuristics are important as they often lead quickly to solutions that one would otherwise reach much more expensively by analytic techniques.

Abstract Reviews the book `Updating Standard Cost Systems,' by Carole B. Cheatham and Leo R. Cheatham.

[Prediction is one of the most important aspects of investment decision making. This study provides evidence that investors' predictive earnings judgments can be systematically influenced as a consequence of the combined effects of "output interference" and "availability," and that the use of financial accounting information in the prediction process seems to provide limited benefit in terms of reducing this effect. Output interference is a psychological concept that implies that whatever is thought about first interferes with, and thus inhibits, later thoughts about an issue. An availability-based prediction strategy is one in which the decision maker uses the relative number of pro versus con reasons generated, and/or the ease with which such reasons can be generated, as cues in judging the likelihood of future events. Fifty-eight investors participated in an experiment that demonstrated that the order in which they considered opposing arguments regarding the possibility of reaching a specified level of earnings had an impact on both their ability to generate supporting and opposing reasons and their subsequent probability judgment that earnings would actually reach the specified level. The outcome for which the investors were able to generate the most supporting reasons was judged more probable. Investors were able to think of more reasons supporting a particular outcome, not because there were more such reasons in the objective environment, but rather as a consequence of output interference. The systematic effect on judgment, although perhaps slightly reduced, persisted when investors had access to financial statements while considering the company's earnings prospects.]

Abstract ABSTRACT: In this study, sections of working papers from audits performed by one office of a public accounting firm were obtained and investigated. The working papers contained the Information documented from the preliminary evaluation of internal control over the accounts receivable/sales area. Data from the working papers were provided as Input, and discriminant analysis was used to construct a descriptive model of the auditor preliminary evaluation judgments. The model correctly predicted about 80 percent of the individual auditor judgments, which is significantly more accurate than a chance model, end the importance of the presence or absence of particular control activities on the auditors' evaluations was investigated from the model.

[In this study, sections of working papers from audits performed by one office of a public accounting firm were obtained and investigated. The working papers contained the information documented from the preliminary evaluation of internal control over the accounts receivable/sales area. Data from the working papers were provided as input, and discriminant analysis was used to construct a descriptive model of the auditor preliminary evaluation judgments. The model correctly predicted about 80 percent of the individual auditor judgments, which is significantly more accurate than a chance model, and the importance of the presence or absence of particular control activities on the auditors' evaluations was investigated from the model.]

Abstract Reviews the book "Accounting Principles," by Roger H. Hermanson, James Don Edwards and R.F. Salmonson.

Abstract Reviews the book "Social Auditing," by David H. Blake , William C. Frederick, Mildred S. Myers, Rogene A. Bucholz and Donald E. Wygal.

Abstract ABSTRACT: The deductibility of professors' home office expenses has been increasingly liberalized for the last 13 years, resulting in a favorable income tax deduction. Recent legislation has limited this deduction severely, although with proper tax planning, a number of professors still will find it available. The purpose of this article is to examine the availability of the home office deduction under the new legislation and to illustrate the economic feasibility of taking it even when the deduction is allowable. A table provides the economic results of taking the home office deduction under various combinations of personal residence ownership periods and total home office deductions to depreciation ratios. As illustrated, the home office deduction is not economically feasible in a number of circumstances.

Abstract The article presents the author's examination of incorporating instruction in computers, programming and electronic data processing concepts into the accounting curriculum. the author observed that the introductory course in computers is a significant pre-requisite to effective integration of the computer in the functional courses. He also observed that data-based systems and user-oriented software enhance the flexibility and diversity of learning experience available to students. He also added that direct incorporation of computers into the accounting curriculum can augment the student's ability to make efficient use of the computer and help him attain a greater depth of understanding of the subject matter.

Abstract The article comments on a comparative analysis of net realizable value (NRV) and replacement costing, in reference to the article written by Norton M. Bedford and James C. McKeown for the April 1972 issue of the periodical "The Accounting Review." The author agrees that goal congruence aspects of alternative accounting procedures should be considered in evaluating their effectiveness. He also emphasizes the overstatement of the NRV model. However, this should not be interpreted as a criticism of the NRV model.