The impact of accounting information on ethical behavior has been extensively documented. Additionally, agency theory is a widely accepted behavioral perspective. Despite this, there is an absence of instructional material in the accounting education literature that ties ethical issues to an...

This paper studies a periodic-review pricing and inventory control problem for a retailer, which faces stochastic price-sensitive demand, under quite general modeling assumptions. Any unsatisfied demand is lost, and any leftover inventory at the end of the finite selling horizon has a salvage...

Conceptually, customer relationship value depends on customer perceptions of the cost of switching to another supplier. Empirical tests of switching cost effects have been hampered because traditional performance measurement systems and customer satisfaction scores do not reflect switching cost...

The benefit of non-information rationing aggregate performance evaluation is studied in a limited commitment setting. Depending on the prior distribution of the managerial skill parameter, an equal bonus rule, that is intertemporal aggregation of performance measures, can be efficient as it...

Cost-based transfer pricing is used by many firms. However, there exist many cost-based methods that may be centralized or decentralized. If centralized, the firm's central office has discretion how accurately to measure the divisions' costs. In order to measure cost reliably, the firm must...

Full-cost transfer pricing has been criticized for providing production units with too few incentives to economize on costs. Our empirical study based on panel data from a sample taken from a large producer of fast moving consumer goods shows that charging too high a transfer price for products...

We analyze the optimal behavior of an organization when its employees can manipulate the organization's accounting system to their private advantage. We find that the organization may benefit by helping its employees manipulate the system. This help can reduce the employees' private returns from...

Manufacturers have recently begun outsourcing product assembly and completion tasks to their suppliers. Such outsourcing solves several contracting problems, but generates new incentive frictions between manufacturers and their suppliers. In this paper, we analyze a manufacturer's decision to...

This paper contributes to the recent levers of control (LOC) literature on the relationships between innovation and management accounting and control systems (MACS) by emphasising the importance of the choice by which individual MACS are selected for interactive use. Using data from a...

For past two decades, it has been argued that traditional management accounting practices have failed to cope with the requirements of technological changes in manufacturing practices (Askarany, 2005, 2003; Baines amp; Langfield-Smith, 2003; Beng, Schoch, amp; Yap, 1994; Bork amp; Morgan, 1993; Cavalluzzo amp;...