Some Observations on Demski's Ex Post Accounting System: A Reply.
The object of a structured accounting system is to focus on the decision-performance control problem by monitoring all parameters and variables in a firm's particular decision models and reflecting their deviations in a hindsight optimum decision. Since performance deviations may imply optimum decision deviations and vice versa, it would appear that people should recognize both sets of possible consequences in generating control information. Intra-period revision of an implemented decision is based upon a consideration of the firm's present state, which is the result of past decisions and actual performance, and its predictions for the future. Moreover, intra-period physical and economic limitations often constrain the adaptation possibilities, for example, major production mix alterations may be physically or economically infeasible in the middle of a period. And, because of the particular exigencies of this process, these decisions are usually made in a heuristic manner.
- DOI
- 10.2308/tar-4482087
- Volume
- 43 (4)
- Pages
- 672-674
- Language
- en
- Export
- BibTeX
- Sources
- crossref openalex