Committee Report: Committee on Managerial Accounting.
This report investigates the conceptual desirability of maximizing the consistency of the measurements and reports of the control and planning functions. The committee on managerial accounting interprets the term "consistency" among processes (such as accounting processes, decision processes, planning processes, control processes etc.) to mean that these processes are regulated by similar sets of rules. Thus, there would be consistency between the accounting process applied this year and the accounting process applied last year if these processes were regulated by the same sets of accounting rules. Data that are useful to the decision maker must necessarily be relevant and relevant data are necessarily consistent with the decision maker's task. Theoretically a firm should balance the cost of information with its value. Presumably increased consistency generally increases the cost of information processing. Time series consistency is essential if receivers of recurring reports are to be able to use them without comprehensive explanation of the nature of the data and the computations involved in their preparation.
- DOI
- 10.2308/tar-4500611
- Volume
- 45 (4)
- Pages
- 1-8
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref