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Some Statistical Properties of Standard Cost Deviations
Citation
Booth, J and Willett, RJ, Some Statistical Properties of Standard Cost Deviations, I M A Journal of Management Mathematics: (Institute of Mathematics and Its Applications), 8, (2) pp. 167-179. ISSN 1471-678X (1997) [Refereed Article]
Copyright Statement
Copyright 1997 Oxford University Press
DOI: doi:10.1093/imaman/8.2.167
Abstract
Very little is known about the theoretical statistical properties of accounting numbers. In this paper a probability modelling technique is used to analyse the volume, efficiency, and price deviation—more usually known in the accounting literature as ‘variances’—of standard costing. Standard-cost deviations are defined as differences between certain types of conditional and unconditional expected costs. The basic statistics required to construct theoretical confidence intervals for these differences are identified, and it is shown how the formulae normally used in their calculation may sometimes be correlated. The modelling technique adopted is based on a theory of accounting measurement which interprets accounting numbers as specialized types of statistics. It illustrates the potential of the theory for the development of a better understanding of the statistical properties of accounting numbers.
Item Details
Item Type: | Refereed Article |
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Research Division: | Commerce, Management, Tourism and Services |
Research Group: | Accounting, auditing and accountability |
Research Field: | Management accounting |
Objective Division: | Economic Framework |
Objective Group: | Measurement standards and calibration services |
Objective Field: | Service industries standards and calibrations |
UTAS Author: | Willett, RJ (Professor Roger Willett) |
ID Code: | 100542 |
Year Published: | 1997 |
Deposited By: | TSBE |
Deposited On: | 2015-05-19 |
Last Modified: | 2015-06-09 |
Downloads: | 0 |
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