This paper models cost assignment to products as part of an activity sharing contract between two product centers, each concerned with reducing cycle time for its jobs. The allocations serve as an incentive mechanism (in this case, one which induces truthful reports of private information). The...

Short-run maximization of firm profits provides the sole justification for transfers at marginal cost. This conclusion is based, however, on a theory of the firm that ignores precisely those information and agency costs that make transfer pricing necessary. An alternative approach is to...

In this paper we test a dynamic agency model. The incentive compatible contract is non - monotone and does not award the highest pay to the most successful agent. Based on the assumption that agents are rational we expect them to choose high effort despite the non - monotonicity of the...

The diversity and complexity of the different types of passenger transportations in operation today invokes the need for an efficient transport service management system. Existing transportation models tend towards proffering solution for finding the least cost combination for delivering cargoes...

Managers often make judgments about cost-driver and profit-driver relations using subjective analysis rather than statistical analysis of accounting data. We provide theory-consistent experiment evidence that, even when the strength and temporal contiguity of the relation between financial...

This explorative study contributes to the limited body of knowledge on the financial impacts of using multiple forms of controls in managerial performance evaluations. The study explores (1) how short-term profitability is affected by headquarters' emphasis on financial, nonfinancial, and...

The study was designed to address specific gaps in the literature by identifying a comprehensive set of antecedents and characteristics with respect to the roles of management accountants (MAs) and exploring the consequences of how these roles are discharged. Interviews were conducted with 18...

A current issue of potential concern in theory-based management accounting research is the extent to which endogeneity limits the validity of empirical testing of models. This paper aims to stimulate debate as to the meaning of endogeneity as it applies to (management) accounting research. The...

This paper discusses and reconceptualises the role and practice of accounting in dynamic and complex business networks. The paper conceptualises change in complex inter-organisational systems as a process where various perturbations from the environment or installation of management accounting...

Much of the production in firms takes place over time. This paper seeks to understand the value of interim performance information on long projects. In particular, the model explores the sorting effects of performance evaluations. Conducting an interim performance evaluation increases efficiency...