THE ACCOUNTING EXCHANGE.
This article presents a fair illustration of how American accountants develop well defined accounting practices and ignore the underlying theory involved. The acceptance of the relative sales value theory of allocating costs is important because flew opportunities for its application are constantly appearing. If the warrants are detachable, they constitute a case like stock rights except for the fact that the relative sales values at date of issue cannot be used. If the first available and equitable sales values are used, it appears that the relative sales value theory should be used. The study of the use of relative sales values were as a basis of allocating costs by examining cases in which the application of this specific bit of accounting technique has been recommended by well-known accounting authorities. Unless there are reasons to the contrary, the selling price forms the best guide in attaching weights to be used as conversion factors when repricing a commodity after the grading process.
- DOI
- 10.2308/tar-8596481
- Volume
- 4 (4)
- Pages
- 251-254
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref