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:

Verifiability

A principle ensuring that financial information can be checked for accuracy, reliability, and impartiality by independent observers.

Software Development Costs

Expenditures related to the design, development, or improvement of computer software, which can be capitalized or expensed depending on their nature and benefit to future periods.

U.S. GAAP

United States Generally Accepted Accounting Principles, the set of accounting standards and procedures used in the U.S. for preparing financial statements.

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, or to improve existing ones, often involving considerable investment and risk.