Some Observations on Demski's Ex Post Accounting System.
In a recent issue of "The Accounting Review," accountant, Joel S. Demski described an extension of variance analysis. This article presents an analysis of some of the assumptions underlying Demski's proposed system and briefly discusses its limitations. This article will provide those interested in conducting additional research in this area with useful insights relative to the most fruitful avenues for such research to take. Demski's article represents a worthwhile and provocative contribution to the managerial accounting literature. The possibility of deriving a control system which would encourage managers to depart from their original production plan when such departure is to the firm's advantage is a highly interesting and potentially important development. Some of the feasibility problems indicated might prove to be insignificant in the presence of computer technology's rapidly expanding capacity to handle data. Thus the author concur with Demski that additional research in this area is justified, and he is hopeful that the discussion will stimulate and provide useful points of departure for such research.
- DOI
- 10.2308/tar-4482077
- Volume
- 43 (4)
- Pages
- 668-671
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref