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In the condition of the current market the effective manage of expenses and calculation accountancy of cost production in agriculture must be aimed to control for resources usage at any level of technology process and getting the accountancy database needed for gaining the management targets.The improving the technologies and set up aspects of business entity activity, taken place for the last decades, which caused a significant influence on condition and structure expenses but could not provide the increase of economic effectiveness in agriculture.

Significant changes in business environment at the end of 20th century and the beginning of 21st century enable the development and application of modern cost accounting methods which main purpose is to give required information to management regarding the effectiveness of certain products, projects, activities, consumers, responsibility centres etc. Traditional cost accounting methods were developed in the middle of 20th century due to the automation of production. The focus of traditional cost accounting methods was on manufacturing cost and ways of indirect manufacturing costs allocation to products or services. But, further development of technology, changes in consumer’s preferences, global competition face modern manufacturing companies with permanent challenges of survival at the global market. Traditional cost accounting methods are no longer appropriate in modern business conditions, because cost accounting methods should indicate the potential areas in companies where are possible cost savings. Therefore, modern cost accounting methods are focused on cost rationalization and cost reduction, since modern manufacturing companies cannot effect on market prices but can effect on their costs. In current business conditions, modern cost accounting methods are more appropriate while they are focused on the total costs through the whole product life cycle. This paper deals with the modern cost accounting methods and their application in manufacturing companies. The results are showing that modern cost accounting methods enables more confidential determination of the real product profitability. But it is also important to state that research results show that modern cost accounting methods should be applied together with traditional cost accounting methods. Traditional cost accounting methods give information regarding cost in short term, while modern methods are orientated on longer period (e. g. on the whole product life cycle).

The aim of the paper is to compare the principles, information outputs and consequent managerial implications of the variable costing method and throughput accounting, according to their different perceptions of cost variability. These two approaches could give rise to various product mix decisions and findings relating to effect on profitability. The paper also provides a practical example of limitations experienced on two production lines for certain items. Comparison is made between these two approaches as to which elicits a relevant decision on production mix. Both the variable costing method and throughput accounting represent very similar methods based on variable costs that do not reflect fixed costs. Variable costing methods examine costs that change in accordance with volume of output. On the contrary, throughput accounting merely acknowledges total variable costs, and focuses on limitations which exist in a given company. © 2016, Institut za Istrazivanja. All rights reserved., GACR, Grantová Agentura České Republiky

Recently, the hypermarket profitability is an important issue for the world wide retailing industry with vast literature was found on its definitions, measurements, and models of studied. In general, majority of related work showed that various methodologies and models have been applied to evaluate the profitability of hypermarket, where more dominants on financial and accounting methods. Specifically, estimate the hypermarket profitability are always dominating by financial and accounting methods and approaches with finale attention on maximizing the customer lifetime value (CLV). In fact, most of traditional measurement have been used are interest rate, chuck rate, lease, as well as income and consumptions of consumers. However, a little attention has been given to using others variables, as well as spatial based measurement although it has big potential to contributes on prospecting the profitability of hypermarket. In addition, continuously, financial or accounting variables has been improved and reused in different ways where the method itself in overall is still remains as before. The objective of this paper is to overview the weakness of financial and accounting methods with focused on theoretical and applications issues of estimating hypermarket profitability. Secondly, this paper is aimed to suggest geospatial method as alternative ways for bridged the gap of existing works regarding the estimations of hypermarket lifetime value. By using geospatial variables as well as spatial method, this work will contributes on establish new ways of estimated the CLV of the hypermarket where spatial platform is function to visualized the real situations of financial and accounting information as well as it emerge in the real marketplaces. In future, the use of geospatial method will be brings new hope on better understanding on CLV especially how CLV can estimated by both financial-accounting and spatial variables.

This paper examines whether the TFP growth of the Korean economy slowed down in 2000s based on growth accounting, focusing on how sensitive the results are to the particular aspects of the growth accounting method. There has been no consensus on this issue as the previous studies have provided very diverse results due to the differences in the details of the growth accounting method. Main results of this paper are as follows. First, it is how to calculate the labor income of the self-employed that has the most significant impacts on the estimated TFP growth. Measuring capital stock also matters. Second, the TFP growth of the Korean economy appears to be sustained in 2000s when the extreme assumptions on the labor income of the self-employed are excluded and capital stock is measured by the most frequently-adopted method in the previous studies. For more reliable estimation of the TFP growth, further studies on measuring the labor income of the self-employed are needed.

Marginal abatement cost curve (MACC) analysis allows the evaluation of strategies to reduce agricultural greenhouse gas (GHG) emissions relative to some reference scenario and encompasses their costs or benefits. A popular approach to quantify the potential to abate national agricultural emissions is the Intergovernmental Panel on Climate Change guidelines for national GHG inventories (IPCC-NI method). This methodology is the standard for assessing compliance with binding national GHG reduction targets and uses a sector based framework to attribute emissions. There is however an alternative to the IPCC-NI method, known as life cycle assessment (LCA), which is the preferred method to assess the GHG intensity of food production (kg of GHG/unit of food). The purpose of this study was to compare the effect of using the IPCC-NI and LCA methodologies when completing a MACC analysis of national agricultural GHG emissions. The MACC was applied to the Irish agricultural sector and mitigation measures were only constrained by the biophysical environment. The reference scenario chosen assumed that the 2020 growth targets set by the Irish agricultural industry would be achieved. The comparison of methodologies showed that only 1.1 Mt of the annual GHG abatement potential that can be achieved at zero or negative cost could be attributed to agricultural sector using the IPCC-NI method, which was only 44% of the zero or negative cost abatement potential attributed to the sector using the LCA method. The difference between methodologies was because the IPCC-NI method attributes the abatement from agricultural mitigation measures, partially or fully, to other sectors within a nation or to activity taking place in other countries. This suggests that it may be politically difficult to justify to farmers that mitigation measures should be adopted in agriculture, if the accounting process does not credit this mitigation to them. The disagreement between methodologies also indicates that unilateral national or regional policies to reduce agricultural GHG emissions based on the IPCC-NI method could lead to mitigation options that increase global emissions (carbon leakage). The limitations of the IPCC-NI method for assessing national agricultural GHG emissions could be overcome by reforming or expanding the accounting methodology to include domestic offsetting and to assess emissions associated with national consumption via LCA. This would overcome the problem of carbon leakage and credit (in part) agricultural practices that reduce emissions in other sectors or nations without emission caps.

In this paper, using the 2011 national economic accounting data of the provinces, we evaluated the government department performance by factor analysis. And then calculated the local government department's total output taking advantage of the labor production efficiency. And the labor production efficiency of government department concludes the performance information. Which will improved the method of accounting government department's output by cost.

The main topic of the paper is an experiment described by Hopkins, Houston and Peters published in Accounting Review in 2000. Their study concerned on impact of accounting method on judgement of analysts in case of accounting method selection for the business combination reporting. This experiment demonstrated the influence of selected accounting method on judgement of analysts regardless of the sole business combination reported via different ways.

Tropical forestry is often not competitive with agricultural land uses such as pasture for cattle ranching. Additional revenues from carbon sequestration generated by the Clean Development Mechanism (CDM) of the Kyoto Protocol can change this situation. In three different zones of north-western Ecuador, minimum compensation payments for carbon sequestration were determined, which would make reforestation a feasible land-use alternative. Based on our findings that these minimum prices depend on the net benefit of the respective land-use alternatives, and on the accounting regimes for CDM sink projects, we applied the accounting rules for temporary and long-term Certified Emission Reductions (CER) to two reforestation projects: forest plantation and natural regrowth of secondary forest. A comparison of these alternatives showed that secondary forest is an attractive alternative under both accounting regimes because of its low establishment costs and relative early timber revenues. After identifying the zone most suitable for carbon sink projects, we calculated net benefits of land-use changes in the event that certain prices for emission reductions were actually paid. We found that secondary forest becomes economically attractive, if the price of permanent credits is above $4.5/tCO 2 , whereas forest plantations require permanent CER prices of $7.0/tCO 2 . In both cases, the results are within the price margins forecasted by various institutions for the first commitment period of the Kyoto Protocol. The presented methodology is meant to support the decision making process on the supply side of a future CER market. Opportunity costs of land-use changes have to be analyzed carefully before deciding in favor of long binding forestry projects. Assigning temporary credits to naturally regrown secondary forests could–although excluded from CDM during the first commitment period–combine the advantages of a flexible accounting regime with the positive economic and ecological effects of this competitive land use.

Most of affiliated hospitals to colleges and universities are subordinate to the financial departments. Cash basis of accounting is used in these hospitals. But with the introduction of the new Financial Regulations for Institutions of Higher Learning, more requirements are imposed on cost accounting and performance appraisal, which makes the strengths of accrual basis of accounting more visible. In this paper, the author conducts a comparative study and draws a conclusion that adding accounts receivable and payable and accrual basis of accounting to the existing cash basis of accounting is conducive to the authenticity of financial information.

This paper attempts to find an explanation of why empirical evidence does not confirm the signalling hypothesis that income- increasing accounting methods, such as linear depreciation, are typically chosen by firms with positive inside information. First, specific characteristics of the legal environment are required, as signalling by an income-increasing accounting method is only possible when the increase in the tax rate and the taxes paid is larger for the unsuccessful firm. Moreover, fiscal law may only offer the discrete choice between linear and accelerated depreciation and a certain method is only allowed for tax purposes when it is also recorded in the financial statements. Because the number of signalling levels offered by the law is limited, signalling by the choice of an income- increasing accounting method can only occur in industries where accelerated depreciation is the value-maximizing choice for all types. Finally, not all firms can reveal positive inside information because contracting structures differ between firms. © 1997 John Wiley & Sons Ltd.

When conducting the research, two main hypothesises were set up: H1: The majority of Croatian production companies are using traditional accounting methods for cost allocation. H2: Direct production costs are taking the highest portion in production cost structure in the majority of Croatian production companies. Because of such production cost structure, modern cost allocation accounting methods wouldn’t contribute to more reliable company profitability evaluation and business decision making. The research is conducted on the basis of defined sample which include all important Croatian public production companies. Cost allocation process is not an easy, but rather difficult and complicated procedure which requires the appliance of appropriate accounting methods. The process of allocating costs to cost objects is enforced through the application of certain accounting methods. These accounting methods often cannot provide fair and objective cost allocation, because these methods are based on certain cost allocation bases which are arbitrary and not always appropriate for reliable cost allocation.

Etienne van Geyt set up a research project using data from Belgian industrial firms to explore the relationship between cost accounting methods used by these firms and certain characteristics of the firms like cost structure, fluctuating sales and extent of production capacity used. His research results, which are statistically significant, indicate that for Belgian firms, those using variable costing for internal reporting have more greatly fluctuating production and sales, a lower percentage of fixed production costs to total production costs and a greater homogeneity of the production process than firms employing full-cost accounting methods.

This paper focuses on inconsistencies in cost-flow behavior associated with the use of dollarvalue LIFO. These inconsistencies can lead to confusing inventory valuations, potentially misleading accounting reports, incorrect purchasing decisions, and unanticipated tax results. Understanding these effects will enhance the use of dollar-value LIFO as a management tool and will improve the interpretation of financial accounting information. With dollar-value LIFO for multiple items, much of the conventional wisdom about LIFO vanishes. The relationships among inventory purchases, inventory liquidations, and gross margin are derived.

The paper examines adaptations to regional accounts used to construct regional and interregional Social Accounting Matrices (SAMs). Balancing procedures for commodities and factors are transferred from National to Regional accounts and procedures to construct spatial data on interaction are also included in the data-building process. Both involve a novel approach using the geographical concepts of place of production for production activities, place of residence for institutions, market place for commodities and market place for factors. The use of these concepts permits accounting balances to be calculated at the spatial level. It is argued that as the size of basic areal unit used in studies declines, more traditional accounting approaches are no longer satisfactory. The theoretical basis of the spatial regional accounting model is presented and an example of the construction of a Danish Interregional SAM (SAM-K) is examined, where particular attention is given to data requirements, showing that these are much more modest than generally assumed.

THE PURPOSE OF THIS paper is twofold: first, I measure the effect of corporate capital investment decisions on the firm's earnings in the years following the capital investment. This relationship between investment and earnings is determined largely by two factors controllable by management: (1) the accounting methods used by the firm to measure its earnings and (2) the investment projects selected. The second purpose of this paper is to test a joint hypothesis about the effect of the type of control (manager or owner) of the firm on the investmentearnings relationship. Briefly, I find that the capital expenditure significantly reduces the earnings reported in the following year. Whether the firm is under a significant ownership control, however, seems to make little difference to this relationship between investment and earnings. Thus the selection of accounting methods and investment projects does not seem to be affected by the type of control of the firm. Measurement of investment-earnings relationship is presented in the first section. The control hypothesis is tested in the second. Implications of these results and further work now in progress are discussed in the concluding section.

This study explores possible effects of municipal accounting practices on asset-acquisition decisions. Theoretical decision models are developed using expenditure and depreciation accounting for reporting performance. The models suggest that expenditure accounting may lead to uneconomical leasing. Case studies of three cities focused on comparing present values of their leases to purchase alternatives and on interviewing department administrators. Significant uneconomical leases were found. The case studies suggest that a complete model of municipal administrators' acquisition decisions include consideration of accounting methods used to report performance; perceived risk of obsolescence; restrictions of grantors, third-party reimbursers and higher management; and administrators' background and training.

If investors distinguish between companies' accounting methods in capitalizing earnings, then one would expect more conservative (i.e., income-decreasing) methods to be associated with higher price-earnings ratios. Using a sample of 117 firms over the 1970-75 period, the authors examined the relation between a company's PIE ratio and its method of accounting for inventory (LIFO versus FIFO), depreciation (accelerated or straight-line) and investment tax credit (deferred or flow-through); financial variables controlled for dividends, growth, beta and firm size. The results indicate that dividend payout and firm size were the most important financial variables. Of the accounting variables, inventory method and investment tax credit method were significantly related to P/E ratio; companies that chose LIFO inventory and deferred investment tax credit had higher price-earnings ratios than companies that chose FIFO and flow-through tax credit. Depreciation method did not appear to be related to P/E.

This paper presents a stylized game-theoretic model in which inventory accounting choices of firms convey proprietary information to their competitors, and hence those choices are strategically made. The model provides a rationale for the use of FIFO by some firms, foregoing significant amounts of tax benefits which could be captured by the use of LIFO. An explanation is also given for negative market reactions to LIFO adoptions documented by most of the empirical studies of LIFO/FIFO decisions. A further result obtained is that, given a certain condition, the use of FIFO (thus foregoing the LIFO tax benefit) would be more frequently observed in industries with high barriers to entry. Some extensions and limitations of the model are also discussed. Resume. L'auteur propose un modele stylise inspire de la theorie des jeux dans lequel les choix des entreprises au chapitre de la comptabilisation des stocks transmettent de l'information privilegiee a leurs concurrents, ces choix etant donc strategiques. Le modele contient une explication du raisonnement sous-jacent a l'utilisation de la methode de l'epuisement successif (premier entre, premier sorti ou PEPS) par certaines entreprises qui renoncent ainsi aux avantages fiscaux importants qu'elles pourraient tirer de l'utilisation de l'epuisement a rebours (dernier entre, premier sorti ou DEPS). L'auteur propose egalement une explication des reactions negatives du marche vis-a-vis l'adoption de la methode DEPS, appuyee par la majorite des etudes empiriques portant sur les decisions relatives aux methodes DEPS et PEPS. Une autre des conclusions de l'etude veut qu'etant donne certaines conditions, l'utilisation de la methode PEPS (par laquelle l'entreprise renonce aux avantages fiscaux de la methode DEPS) serait plus frequemment relevee dans les secteurs dans lesquels les barrieres a l'entree sont importantes. L'auteur traite egalement des prolongements et de certaines limites du modele.

Considerable attention in the accounting literature is devoted to dis- cussing possible motives for and effects of choices among alternative accounting methods. Although insights have been gained into investor (stock market) reactions to changes in accounting methods, little is known about either management motivations for observed accounting choices or the effects of these choices on subsequent operating decisions. One explanation for the dearth of empirical findings is that few of the proposed theories of accounting choice have offered strong links to real economic incentives. In addition, previous studies have concentrated on firm characteristics existing before and concurrent with the accounting choice. Since managers making accounting choices are likely to consider future conditions as well, this approach may overlook important deter- minants of accounting choices. This approach also precludes the detection of possible changes in operating policies induced by accounting choices. A choice among alternative inventory costing methods, especially between the last in, first out (LIFO) and first in, first out (FIFO) cost- flow assumptions, can generate potentially large changes in a firm's cash flows due to its impact on taxable earnings. These cash-flow effects provide economic incentives for choices between these methods. More- over, these cash-flow effects depend, in part, on the behavior of year-end physical inventories. Because year-end inventory levels are subject to management control, the LIFO-FIFO choice can both affect and be affected by subsequent inventory management policies. The LIFO-FIFO choice offers, therefore, the opportunity both to identify factors which influence accounting choices and to examine associations between these choices and subsequent operating decisions. This study investigates whether associations consistent with LIFO- FIFO tax incentives exist between management choices to adopt or not adopt the LIFO inventory costing method and characteristics of firms' year-end inventories. Both pre- and postchoice characteristics are ex- amined. Because the LIFO-FIFO choice is voluntary, a postchoice association would be consistent with managers both anticipating future inventory characteristics when making a LIFO-FIFO choice and chang- ing inventory management policies in response to that choice. Evidence consistent with the hypothesis that LIFO adoptions are associated with changes in inventory management policies would have important macroeconomic implications. Zarnowitz and Moore [1977] have argued that a failure to recognize the major shift in inventory costing methods which occurred in 1973 and 1974 (primarily FIFO to LIFO) resulted in an underestimation of inventory accumulations by the U.S. Department of Commerce. This underestimation resulted from the different proce- dures used under LIFO and FIFO to assign costs to inventory units. While this effect of LIFO-FIFO choices can bias macroeconomic mea- surements and forecasts, an associated change in inventory management policies by a large number of firms could directly affect underlying macroeconomic stocks and flows. The research design involves comparisons between a treatment group sample of firms which adopted LIFO and a matched pair control sample of firms which continued to use FIFO (or an average cost method). Two primary measures of inventory properties are derived from available financial statement disclosures. One measure approximates physical in- ventory levels, while the other estimates what the difference would have been each year between each firm's cost-of-goods-sold computed under the LIFO and FIFO alternatives. The empirical results based on these measures indicate statistically significant associations between LIFO adoption decisions and inventory properties and reveal striking cash-flow consequences associated with LIFO-FIFO choices.

In this paper, we describe various systematic properties of LIFO and FIFO firms' accounting numbers. Included are assessments of these properties for firms' reported annual numbers and for their "as-if' counterparts, obtained by estimating what LIFO (FIFO) firms would have reported had they used the FIFO (LIFO) inventory method instead. Our purpose in conducting these assessments is to provide additional evidence on tax and nontax explanations of firms' choices of inventory accounting methods. In the next subsection, we elaborate on these two classes and suggest that the nontax explanations may have attracted adherents partly because existing empirical evidence is not entirely consistent with the tax explanation of LIFO/FIFO choices of inventory accounting methods. Although data limitations prevent us from performing direct tests of these alternative explanations, our empirical results