Economists Often Remark That Accounting Data Are Purely Historical and at an Aggregate

question 35

Essay

Economists often remark that accounting data are purely historical and at an aggregate level and do not provide information on incremental changes.So why is it the key data source for decision control and important in decision management?

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Definitions:

Substantial Decentralization

The process or policy of distributing or dispersing functions, powers, people, or things away from a central location or authority.

Horizontal Specialization

Division of labor where tasks are divided into specialized jobs or roles at the same level in an organizational hierarchy.

Adhocracy

An organizational structure characterized by flexibility, employee autonomy, and an emphasis on innovation and creativity.

Legal Authority

The power or right given to an individual or organization to perform certain actions based on legal or official rules.