Introduction
The purpose of this article “accounting, organizations and society” is provision of guidelines to researchers, readers and editors on what they should expect when dealing with any article about accounting. It gives the definition of accounting theory as the assumptions, frameworks and methodologies used in the application and study of principles related to finances or financials. The term introduction means it is the beginning of everything included in journal used initially but since it is introduction, it will tend to explain the usage of tables, charts and figures. It also involves reviewing both the verification of the accounting practices and how they added to the regulatory framework as well as the historical foundations for accounting. It is the regulatory frameworks that govern financial reporting and financial statements (Austin & Yaffee 1999).
Understanding of the issues
Use of appropriate theories
Anytime the word introduction comes into the minds of scholars, it means that an overview and summary of the expectations is well put into paper. The paper also tends to touch on positive and normative accounting, which happens to be part of the accounting theories pool. To some extent, economics falls in two categories mainly art and science where an investor can look at the prepared financial data for the purposes of determining the best and most stable or rather attractive stock for purchase. According to the accounting theory in subject to the paper, invested money acts as a statement to show the worthwhile services and products according to the investor (Austin & Yaffee 1999).
Application of normative/ normative theories
The economics dichotomy gets expression mostly from the ideals of normative and positive accounting. I would say that the findings are accurate since more than two articles were put into use and to come up with the idea, all of them must have contained the same related content, a bit that explains accuracy. Positive accounting is the positive theory of economy and practices of accounting have an objective factor and 100% based on facts. This means that only the data at hand is useful and helpful but does not mean that the corporate growth translates to increase in dividends of the stakeholder (Austin & Yaffee 1999).
It would therefore be in order to say that all data collection and bookkeeping in accounting relates to economic theory. This economic theory is positive or in short positive economic theory. The use of figures also evaluates the accuracy because the news media cannot cook the findings and graphs. The fact that the information put on the site was meant mostly for students, certain criteria must have been used to verify the authenticity and accuracy of the information (Austin & Yaffee 1999).
Having looked at the eight articles published between the year 1990 and 2000 explains more on their accuracy. Normative accounting again is subjective, aims to describing the economic future, and should mostly be for investors and companies. Normative accounting is a theory that describes and introduces the subjective morality into accounting, as it is a form of value judgment (Austin & Yaffee 1999).
The fact that the basis of the findings is an educational journal denies the news media a chance to assume and make errors in their findings. The strategic direction for example comes into play when formulation of plans takes place on how to take forward the organization. The meaning of a strategy is widely known as the carefully developed plan. Whenever there is presence of correct strategic direction, there must be a plan led to achievement and getting to the goal of the organization. There are three main things for an organization to be successful and have a good successful strategic direction. These things are vision, mission and values of the company. (Pearce, 2009)
The strategic direction aims towards independence promotion and this is the main thing that happens in the organization. The organization has taken a good strategic direction that aims at providing professional training to the staff to get better results. In the next three years, the organization will have more than a strategic direction but also a strategy in internal and external communication. The latter conveys and advocates for the importance of care to all stakeholders, public and early education. By so doing, the company will have built the infrastructure internally for the purposes of vision’s support (Austin & Yaffee 1999).
That therefore means that the reported findings are accurate and reliable. Regression models and the categorical variables must have passed the logistics department before release to the media alongside the hypothetical cases. (Demaris, 92)
The odds ratio natural logarithm is the central concept of mathematics that brings about accounting. The 2x2 table of contingency is the simplest example of a natural logarithm. Take the instance where a child from a school in the inner city pairs with another from outer city or dichotomous outcome with a dichotomous predictor. The logistic regression solves problems through application of natural logarithm to the dependent variable.
In regards to the given examples on assumptions, there was a possibility of endogeneity while estimating the figures in accounting because there were slight errors containing the ability of omission. Endogeneity has a solution, which is getting a variable that for example correlates with education years, but it is not correlated with the ability to go to school (Austin & Yaffee 1999).
This means that the two do not correlate because the persons with the high ability have more schooling thus knowledge for accounting. Accounting has nothing to do with estimations or other basic terms of business. In addition, if the numbers of houses were fewer, the solution would be endogeneity (Austin & Yaffee 1999).
Variables that are instrumental and have been in the past involved with literature are compulsory laws of schooling and they vary by state. This affects the choices of level schooling but there is a likelihood of no correlation with the abilities of individuals. The only time this cannot happen is when the states with low or high ability persons have a more or less likelihood of enacting the stipulated laws (Austin & Yaffee 1999).
Discussion
Positive accounting is best used therefore to explain the financial events that happened in the past as well as the current causes of the business or individuals business standing. Normative on the other hand is best used when coming up with future policies of the economy based on theory (Austin & Yaffee 1999).
Almost all companies intend to screen and do a complete evaluation of the customers in order to meet their personalized needs. Through out the stay with the company, customers will get a good experience and everything done will be in their interest. Success and the driving force of the company are the customer’s needs. Without the customers, there would be no company thus any business going on. The company’s goal is the customer’s total independence and freedom. Every level of improvement gets a certificate of excellence and this is a good motivation. For a successful business, there must be a legit vision, mission and value statement based on accounting theory (Austin & Yaffee 1999).
All the departments in a company that practices accounting concept recognize that their proceedings have philosophical impacts to create and retain a customer in the same company. The core intention of a business is therefore to create a customer and retain for business and trading of services and goods to take place. In all the departments in a company, workers and managers think and act customer. The marketing concept grasps that the basis of achieving the goals of the organization includes determination of the wants and needs of the markets in target and delivering the desired satisfactions than competitors. Accounting concept in other words is an incorporated accounting effort that generates satisfaction of customers as the means to satisfying goals of the organization (Austin & Yaffee 1999).
Accounting theory represents a new fundamental approach to the business. Of all the accounting ideas that have emerged over the years, accounting theory is the most advanced and many people are appreciating it as time goes by. It is only the accounting theory that is able to keep the organization free from the accounting myopia. Without the accounting theory, many businesses of today’s world would be dead. This is because customers require that they get a good service in order to be loyal and get better products to mane them go back unlike in the past where customer and business relation depended on the relationship between the customer and the manager or the owner (Austin & Yaffee 1999).
Managers benefit more from the accounting theory in that they create more customers therefore increase the company’s turn over in terms of goods and services. When customers are satisfied, managers become satisfied too and relaxed. Since the introduction of the accounting theory, customer’s satisfactions in many companies have gone high (Austin & Yaffee 1999).
Whenever accounting theory comes in, there are several salient features associated with it. These features are consumer orientation, integrated accounting, consumer satisfaction, realization of organizational goals. Consumer orientation is the most outstanding feature of accounting theory since it is the importance assigned to the customer (Austin & Yaffee 1999).
Consumers are the determining factor of production and not the firm thus should have a proper follow up procedure for the good of customers. The firms should only produce what the customers want as translated on the cash registers presented by certified accountants. It is therefore good to note that all the accountants’ activities should be customer oriented. These activities include developing appropriate products, identification of needs and wants, distribution and promotion as well as pricing. Customers will automatically buy the products if all these things are effective (Acosta, 2007).
Integrated accounting is the second feature of the accounting theory. It also referred to as integrated management action. At no time will accounting be an isolated function of management. Almost all the activities on the side of marketing will have some comportment on production, finance or personnel, which are other functional areas of management. This means that any action in a particular area of production’s operation on finance certainly has an impact in consumer and marketing. It is therefore obvious that in an integrated set up of marketing, marketing function integrates with management functional areas.
The function in subject, accounting theory, gears towards a proper communication in different areas of management. This act stirs up influence on the corporate decision making process. When the objective of the firm is to make profits by providing satisfaction to the customers, it is naturally subsequent that different departments within the same firm integrate with each other and channel the combined efforts towards the objective of customer satisfaction (Austin & Yaffee 1999).
Conclusion
The most interesting result that the researcher did not come up with is the factors leading to those models. This requires advanced software to minimize the errors and with the use of that, researchers would be in a better position to give accurate results and findings. This would greatly help with the introduction part. For example on the likelihood of enacting the laws stipulated, researchers would have no problem correlating them to the ability of individuals. There would be no effect on the choices of schooling levels since there would be no variation of states. This how important the results left out are to the researchers.
Wages and working conditions of workers in less developed countries should therefore not remain to the demands of the local labor market and it is not preferable for workers in foreign countries to have low paid jobs and difficult working conditions or no jobs at all. Employers should take this as a wake up call and do away with their style of sucking people when there is increment of minimum wages. This also creates a bad image to the employees and in future, such employers could lack employees. It is easier for word to s spread across employees than the employers think.
Reference
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Blanchard, D. 2007. Logit modeling: Practical applications. John Willey & sons publishers. Hoboken. New Jersey.
Demaris, A. 2007. Supply chain management: strategy, planning, and operation. Pearson Prentice Hall. University of Michigan: Michigan
Austin, J. T., Yaffee, R. A., and Hinkle, D. E. 1997. Logistic regression forresearch in higher education. St. Lucie Press. London: UK.
Coyle, R, et al. 2009. Accounting theory: a logistics perspective. Carnage learning. Mason: Ohio.
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