Introduction to special issue on accounting applications. By publishing these papers together in one issue of Management Science we wish to accomplish the dual purpose of exposing management scientists to the application of their discipline to important accounting problems and of allowing...

Decisions of firms such as whether to purchase new equipment frequently rather than better maintain and purchase less frequently are influenced by the (accounting) depreciation policies they use if they are rate-regulated. It is shown that basing decisions on depreciation policies, while...