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Unformatted text preview: ign matters in matrix-like organizations. It concludes by emphasizing the contingency notion of responsibility accounting
systems, i.e., that there is no one right responsibility accounting system. Rather, a responsibility accounting system
must fit with the organization’s strategy and structure.
Chapter 8. Programming
Because money can earn interest, a given sum of money received at some point in the future is worth less than
that same sum received today. This concept lies at the heart of capital budgeting, where an organization invests
some money today so as to receive some returns on that investment over a number of years in the future. This
chapter discusses some of the techniques for analyzing investments using the concept of present value. It also
looks at the effect of taxes and accelerated depreciation on a capital investment decision, and examines the issues
involved in choosing a discount rate for assessing a capital project, including how companies deal with risk in assessing a capital investment proposal. The chapter concludes with a discussion of political, behavioral, and other
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This document was uploaded on 03/30/2014.
- Spring '14