Knowledge that Transforms

Accounting, Accounting Methods

The act of counting with is repeatedly mentioned in early texts' as an essential skill of the accountant. Its memory survives in terms and conventions but the once universal practice is almost entirely forgotten. Counting with casters was a form of visual (as distinct from mental) arithmetic which would not only serve for them that cannot read, but also for them that can do both but have not at some time their pen or tables ready with them. 2 It was surprisingly simple and could be practised by the untutored with a minimum of instruction,3 yet lent itself to the complex currency and exchange calculations of Mediaeval business.4 From its beginning the system was associated with the use of Roman numerals5 which are difficultto manipulate directly but can be made

Inventory, Inventory valuation, Quantity and Price effects, Inventory write downs

Book review, Replacement costs, Sale Price, Asset valuation

Investment credit, Taxation, Income tax

It seems desirable-prudent might be a better word-to begin by explaining my presence on this platform. I might as well begin with an explanation because I have a suspicion that there will be an insistent demand for one by the end of this talk. Some months ago Sid Davidson came into my office. After some chitchat obviously designed to put me at ease, he mentioned this conference and, with beguiling candor, confessed that he was having some difficulty in locating a dinner speaker. It was also apparent that his failure was not due to any lack of effort. Indeed, I gained the distinct impression that he had approached nearly every one of the 58,459 members of the American Institute. Then-and I thought I heard a small mournful sigh-he said: How about you? Naturally, I was flattered to be invited to address this august assembly; but I think that I was really trapped into an acceptance by the growing panic in Sid's eyes. He simply had to complete the program quickly because he was about to embark on one of those overseas missions which involve many educators that the U.S. campuses must often resemble ghost towns. Well, that is how I came to this platform. The whole episode reminded me of an observation by Don Marquis' Archy the cockroach, who said of a friend that he was so unlucky that he ran into accidents which started out to happen to somebody else. This speech also started out to happen to somebody else; but I am not certain who is the greater victim of the accident: the speaker-or the audience. At this point, I must digress for a moment to reassure the academic traditionalists among you that the preceding paragraph in the official text of this address carries a symbol directing attention to a numbered footnote citing the source of that quotation from the erudite cockroach. As a matter of fact, I can add with some pride that the first footnote is

In recent years there has been a growing interest in the application of behavioral science procedures to managerial accounting procedures. However, it is becoming increasingly apparent that the usefulness of the managerial accounting procedures in planning and controlling business operations depends to a great extent upon effective human relations. There have, been several studies emphasizing the psychological effect of various phases of budgeting which provide background for the research reported in this paper.' Since the control phase of managerial accounting necessarily points out individual efficiency and inefficiency, the psychological impact on the individual is profound. Becker and Green stated that feedback of performance results is essential for good morale; it is imperative for each participant to know whether he should feel success or failure. Communicating knowledge of results acts, in this case, as reward or punishment. It can serve either to reinforce or extinguish previous employee behaviors. 2 The empirical research reported in this paper is the first part of a two-phase study of the psychological effect of performance reports. This experiment was designed primarily to test the psychological impact of frequency of feedback. Three groups of students participated

Philip Brown, Ray Ball, Some Preliminary Findings on the Association between the Earnings of a Firm, Its Industry, and the Economy, Journal of Accounting Research, Vol. 5, Empirical Research in Accounting: Selected Studies 1967 (1967), pp. 55-77

Depreciation, Cost allocation, Asset valuation