1. Some Effects of Sequential Aggregation in Accounting on Decision-Making.
- Author
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RONEN, JOSHUA
- Subjects
ACCOUNTING ,INFORMATION theory ,STATISTICAL correlation ,PROBABILITY measures ,FINANCIAL statements ,MATHEMATICAL models of decision making - Abstract
The article focuses on various effects of sequential aggregation in accounting on decision-making. There is a focus on how altering the aggregation level can induce predictable preference patterns between actions. Researchers speculate that it may be possible to affect decision-making by how accountants partition sequential stages of an action and their associated probabilities. The importance to decision-making of aggregating probabilities is highlighted by the need to incorporate probabilistic information in accounting reports. It is assumed that an information system should include an accurate reporting of the probabilities of events. Such information can reduce the range of possible decision errors.
- Published
- 1971
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