search query: @indexterm cost accounting / total: 736
reference: 19 / 736
| Author: | Diedrich, R. Dierkes, S. |
| Title: | Residualgewinnbasierte Steuerung von Profit Centern unter Berücksichtigung von Verbrauchsfolgefiktionen und ausserplanmässigen Wertkorrekturen |
| Journal: | Zeitschrift für Betriebswirtschaft
2003 : VOL. 73:5, Ergänzungsheft, p. 47-69 |
| Index terms: | Investments Cost accounting Profit Capital taxation |
| Language: | ger |
| Abstract: | Contrary to the controlling of investment center decisions, the controlling of profit center decisions has so far not been intensively analyzed within the cost accounting literature. In this article the authors demonstrate that the adoption of the residual income performance measure combined with a compounded historical cost rule provides managers with the necessary incentives to form optimal procurement, production, sales and inventory decisions. Consequently goal congruence is achieved even if managers are impatient and owners possess no information about the future. Since the chosen performance measure requires detailed information about the storage of raw materials and finished products, the influence of cost flow assumptions is also investigated. It is shown that the use of LOFO and FIFO will ensure goal congruence, whereas it will not be obtained if HIFO or LIFO are employed. This result is therefore partially in contrast to the findings of the financial accounting literature. All results are derived under the assumption of certainty. The final section of the article shows that the results still hold if uncertainty about the price for raw materials is introduced into the analysis. However, should manager be impatient it will be then necessary to follow the lower of cost or market-principle. Thus, this paper provides an additional argument to apply the principle of prudence in cost and financial accounting (original in German). |
SCIMA