부산대학교 도서관

The article presents a commentary on an article published in this same issue of the journal titled "Accounting-based divisional performance measurement: Incentives for profit maximization," by J.S. Jordan. The author notes Jordan's explanation of the use of traditional accounting reports within the firm using neoclassical economic theory, and addresses the results of the paper, the problem of communication with the model, and the centralization/decentralization issues raised in the model. The author finds merit in the discussion of accounting reports and cost accounting, but suggests that a study of these reports might be more effective in terms of high fixed costs due to labor, setup times, and zero inventory.