The Accounting Review Vol. 43 No. 2 1968
Accountability Under Industrial Diversification.
Abstract
The article focuses on the accountability under industrial diversification. A firm manufacturing only a single product would typically engage in numerous productive processes. They might consist of a variety of manufacturing operations, as well as internal transportation, storage, machine maintenance, bookkeeping, and many other efforts. Furthermore, the end product would hardly be produced in a single quality, a uniform color, and in a single size. The author refers to the era of industrial capitalism as the age of specialization. According to him it was a product of the industrial revolution, which had taught that division of labor among individuals provides efficiency. Advances in organization structure, with the development of the multidivisional administrative framework, provided management with effective means for control. When a product line was administered through a separate autonomous division, its manager was made responsible for the operating decisions and the coordination of functional activities within the division.
- DOI
- 10.2308/tar-4484131
- Volume
- 43
- Issue
- 2
- Pages
- 303-311
- Language
- en
- Sources
- openalex crossref