Battles in the costing war: UK debates, 1950-75

In the UK, 1950-75 was a lively period in the long-running debates between proponents of absorption and marginal costing. In the nexus of competing interests, management accountants advocated and defended rival costing systems with much vigour and passion. Expressed in the language of the times, these debates were 'battles' in the costing 'war'. We focus on these battles, analysing the various forces that operated upon the combatants, and locate them in the wider costing war. We conclude that no final resolution of the conflict was achieved in the twentieth century, nor is one likely in the foreseeable future.     

Labour-market reforms in transition economies

Several lessons can be drawn from the natural experiments ofcentral and eastern European countries with labour-market policies.Two of them are particularly relevant also for OECD countries.First, it is not wise to reduce the duration of unemploymentbenefits when the length of unemployment spells are on the rise,unless (I) unemployment is still low and there is the administrativecapacity to implement active labour-market policies on a widescale or (ii) there are income support schemes of the last resortin place and an administration capable of cost-effectively enforcingwork-tests for those falling off unemployment benefit compensationrolls. The second and perhaps more positive lesson in the lightof the above is that it is possible to transform institutionand create an efficient policy delivery mechanism within a shorttime span.     

Hispanic Ethnicity,English‐Skill Investments,and Earnings

Analyzing synthetic cohorts in the 1980 and 1990 Public Use Microdata Samples, we find that Mexican‐Americans and other Hispanics acquired English fluency at a faster pace than Puerto Ricans and Cuban‐Americans during the 1980s. Additional results indicate that English‐skill investments differently influenced the earnings distributions of these ethnic groups.     

Reform of European Merger Policy

The paper highlights the main drivers for merger policy reform in the European Union, including the consequences of the recent appeal court reverses. It discusses some of the substantive and procedural issues that the reform package should address, and outlines the reforms in progress. The author concludes that much of the reform package will be beneficial, but some important opportunities have been missed in this inevitably patchwork process.     

Output-inflation tradeoffs in 34 countries

This article examines the responsiveness of real output to the variability of inflation and aggregate demand. In the manner of Lucas (1973), estimates of the output-inflation tradeoff are computed for a large sample of countries. This measure is then correlated with the variances of the inflation rate and the growth rate in nominal income. Because differences in inflation variance (and hence the tradeoff) are viewed as the outcomes of differences in demand variance, correlations between these two variables are also reported. Cross-time and cross-country results provide a good measure of support for Lucas and the notion that attempts to exploit the tradeoff weaken it.     

Embodied ethics: Some common concerns of religion and business

De George's understanding of theology is limited to one of five commonly recognized models of theology, the orthodox model. This model is vulnerable to De George's criticisms. When religious ethics operates out of the revisionist model of theology, however, his criticisms lose their sting. Revisionist religious ethics, moreover, can make a fruitful contribution to business ethics. Such a religious ethic acknowledges the embodiment dimension of business activities, it complements philosophical analysis with the practice of moral discernment, and it recognizes irony as an active component in decision-making.John T. Leahy is an Associate Professor of Religious Studies at DePaul University.     

Research society: science and technology for the ages

This paper imagines a US society that is obsessed with survival over the very long-term, not just over the next decade or two but over very long-time spans measured in the thousands and millions of years. Given that Americans tend to be achievement-oriented, it is plausible that they could become enthralled with this ultimate challenge. It is folly to argue that a fundamental change in the focus of the national psyche from consumerism to longer-term pursuits will happen anytime soon but the paper suggests that dissatisfaction with consumerism, growing environmentalism, increasingly felt limits of non-renewable resources, the increasing extinction of species, and a tiredness with global power politics as usual and its seemingly inexplicable violence and terrorism can someday lead to archetypal change in our society. In anticipation of this change, this paper presents a roadmap of how we could get from here, consumerism, to there, focused on the journey of life through time and space. The paper also outlines threats that humans must address to maintain the journey of earth-life through time and space; and presents a broad range of activities designed to meet the threats and capitalize on important opportunities. Finally, the paper explores how society would be transformed to meet the challenges and what sectors of today’s economy could be expected to contribute workers to a bourgeoning science and technology workforce and concludes with a few remarks about the future to come.     

Communities of tomorrow

The social spotlight seems to be refocusing to the scale of local community at a time when globalisation of the economy is threatening the authority of nation-states. Certain small communities are in peril of falling out of the global economy while losing local customs to a globalised culture. Globally beleaguered nation-states are being squeezed in a two-pronged grip: from the growing weight of global capital and from local communities rising to global pressures by demanding local solutions. National authority is also being bypassed as new global communities of interest form on the Internet, expanding the meaning of the term community. But, is community more than common interest—a celebration of difference, negotiating symbiosis among diversity of ethnicity, lifestyle and aspirations for the future? This paper explores five scenarios of tomorrow’s communities. One scenario is a nostalgic return to the romantic notion of the white-picket fence. Then there is the drop-out feral community. In another future the fence becomes a fortress wall, or a ring of barbed wire. Yet another is a virtual community beyond place, where people sharing a common interest live in cyber-reality. The viable community is one for the long haul. To be viable in a global world it must make local-global links to create synergies by sharing resources and inspirations throughout a diverse, planetary society. Viable, local-global network communities of tomorrow set a global example for creativity by honouring difference and open exchange. They take responsibility for their own futures.Two powerful images from recent events remain with me, in juxtaposition. After considering the American attacks on Afghanistan, a well-experienced teacher feels isolated at the periphery, and powerless. In addition, she watches, in “quiet despair”, one of her pupils “virtually going crazy” before her eyes. She shares these words with me:

“Neither he nor I, it seems, have anywhere to run except to the graciousness and the care of the other children, that as classroom leader I’m tying daily to coalesce, in order to put a cocoon of community around him. Bit like the planet!”

“We all work to keep our very bright and fairly disturbed ADHD-labelled¹ learner connected to us in genuine relationship. That’s the foundation of authentic learning support. I’m not operating a medical model!”

Our leaders and the babbling mass media ignore this, the first image, and many similar to it.By contrast, the second image gets constant exposure. It gets instant recall from most TV viewers. It is the scramble of screen jockeys, on what is left of Wall Street, playing the casino economy, in a frenzy of greed. Curiously the main media focus emphasizes images that represent the world at the global scale. They largely ignore images of life at the scale of community.Why is this? Why does the second image of the so-called finance community, where the focus is the dollar, override the more basic image of a hometown community where the focus is human life-support? Are the media reflecting our true priorities, and have we got it wrong? Is money more important than community?     

Accounting for Option–based Compensation: The Economic Cost Approach

The intrinsic value approach amortizes over the life of the option, the difference between the stock price on the date of the grant and the exercise price of the option. The fair market value approach amortizes over the life of the option, the market value of stock options on the date of the grant. These approaches do not reflect the changes in the option–based compensation cost after the grant date. This paper proposes an economic cost approach that not only adjusts for the changes in the value of the options during its life but also records the issuance of the stock at fair market value on the exercise date.