Data Fixation and the Use of Traditional Versus Activity-Based Costing Systems

An important debate in the contemporary accounting literature relates to the relative merits of activity-based versus volume-based product costing methodologies. Traditional volume-based costing systems are said to be flawed and may seriously mislead strategic decision making. Such arguments assume that decision makers use such information in an unproblematic way. This article reports on an experiment designed to investigate whether decision makers are able to overcome data fixation in a setting involving the use of product cost information. In response to criticisms of previous accounting studies of data fixation, subjects received some feedback after each decision, and were rewarded based on performance. The experiment involved subjects making a series of production output decisions based on detailed case information of a hypothetical firm facing different market conditions for each decision. A between-subjects design was utilized with two cost system treatments: activity-based costing (ABC) and traditional costing (TC). It was hypothesized that the group provided with ABC cost data would make 'optimal' decisions and the group provided with TC cost data would overcome fixation. The results of the experiment indicated that there was, in general, evidence of data fixation among TC subjects, but a small number of subjects did adjust to ABC costs. These results are discussed in the light of previous research and some future directions are outlined.     

Performance Evaluation of Audit Assistants in Chartered Accounting Firms

The development of efficient and competent staff in accounting firms is enhanced by the use of formal performance evaluation systems. This paper reports on a study which examined the objectives and uses of performance evaluation, the methods used, the dimensions evaluated, the development of overall assessments, the provision of feedback and the perceived strengths and weaknesses of the systems in use. In general, the performance evaluation process in these firms is effective, but there is scope for improvement in a number of areas.     

A typology of students based on academic entitlement

Two hundred ninety-three university business students were surveyed using an academic entitlement (AE) scale updated to include new technologies. Using factor analysis, three components of AE were identified: grade entitlement, behavioral entitlement, and service entitlement. A k-means clustering procedure was then applied to identify four groups based on the relative strength of the AE components: the model student, under the radar, instructor as servant, and the privileged. These groups were further characterized by additional demographic (i.e., parental income) and classroom variables (i.e., instructor response times). Findings can help business educators gain better insight into the AE construct and devise more effective instructional strategies.     

Effect of perceived conflict among multiple performance goals and goal difficulty on task performance

Contemporary performance measurement systems, such as the balanced scorecard, often advocate the use of an array of financial and non‐financial measures. Despite many claimed advantages for these systems, recent research shows that the inclusion of multiple performance measures sometimes has undesirable effects. The present study examines one of the potential problems of implementing these systems; namely, the impact of perceived goal conflict on task performance. Using survey data from employees working in multiple call centres in a telecommunication company, we find that perceived goal difficulty increases perceived goal conflict. Additionally, perceived goal difficulty also has a negative, indirect effect of task performance, through the mediating role of perceived goal conflict. Our results have important implications for both the research literature and the designers of performance measurement systems.     

Effects of Feedback and Task Predictability onTask Learning and Judgment Accuracy

This study examines the effect of different types of feedback on task learning and judgment accuracy across different levels of task predictability. The results of a laboratory study show that outcome feedback, alone, and in combination with task properties feedback, promotes judgment accuracy for both high and medium levels of task predictability. The beneficial impact of outcome feedback resulted from learning effects. Specifically , the outcome feedback improved judgment accuracy because of improved task knowledge and, in contrast to previous psychology research, it did not cause a deterioration in judgment consistency where task predictability was less than perfect. The results suggest that the negative effects of outcome feedback on judgment accuracy found in the psychology literature, where task predictability is less than perfect, may be limited in accounting settings where judges have experience with the task.     

The effects of understanding rules and a worked example on the acquisition of procedural knowledge and task performance

Previous research (for example, Bonner and Walker, 1994) has investigated the impact of alternative forms of instruction and practice on both the acquisition of procedural knowledge and task performance. Responding to the call to consider alternative forms of instruction, this study reports the results of an experiment designed to distinguish between the effects of understanding rules and a worked example. Worked examples (such as previously prepared working papers, analysis sheets and spreadsheet templates) are of particular interest as they constitute an important source, frequently used by novice accountants, for understanding and performing various tasks.
The results indicate that understanding rules increase task performance through the acquisition of procedural knowledge, while a worked example provides task-specific heuristics that increase task performance but not procedural knowledge. The different benefits of the two forms of instruction emphasise the importance of matching instruction methods to learning objectives. Furthermore, combining the two forms of instruction lead to the highest levels of task performance even with limited practice and no feedback.
JEL classification: I20; M41     

The Effect of Interpersonal Trust,Need for Cognition,and Social Loneliness on Shopping,Information Seeking and Surfing on the Web

This study contends that certain personality traits of e-consumers have an affect on their shopping, surfing and information seeking behaviors on the Web. Specifically, it is proposed that e-consumers who are low on interpersonal trust are less likely to shop on the Web due to their heightened concerns with Web security. Similarly, an argument is made that e-consumers who enjoy cognitively demanding processing tasks are more likely to use the Web for information search. Finally, it is posited that social loners will be selectively drawn to Web surfing. Findings from an empirical study are presented which support these assertions. Implications of this study for marketers and future researchers are discussed.