THE USE OF ACCOUNTING IN BUSINESS POLICY DETERMINATION.
Abstract The importance of accounting reports in guiding management in everyday business policies cannot be overestimated in the retail business. The figures contained in these reports are scrutinized daily, weekly, monthly, and annually. On the basis of these reports, management determines its policies, alters them from time to time, corrects its plans on the basis of changing trends shown therein, and, at the close of the period, checks its performance by them against its predetermined estimates. In all of these activities, the accounting figures play a vital part. They are not static, historical legends when management utilizes them; they become living, dynamic partners in the business, speaking to those who are listening for their hidden meanings and who can interpret them. In the retail business the solution of the problem of expansion beyond physical plant capacity may be found in a number of moves. The author mentions three and the type of accounting information which would be submitted to management to assist it in making its decisions in the case of each.
- DOI
- 10.2308/tar-7054702
- Volume
- 22 (4)
- Pages
- 394-404
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref