File Download

There are no files associated with this item.

  Links for fulltext
     (May Require Subscription)
Supplementary

Article: A General Approach To Modelling Non-normally Distributed Cost Variance Data: An Illustration

TitleA General Approach To Modelling Non-normally Distributed Cost Variance Data: An Illustration
Authors
Issue Date1993
PublisherAcademic Press. The Journal's web site is located at http://www.elsevier.com/locate/bar
Citation
The British Accounting Review, 1993, v. 25 n. 1, p. 3-15 How to Cite?
AbstractMany studies have indicated that many financial and cost variables are non-normally distributed. For example, empirical studies of financial ratios and cost variance data have found non-normality. However, instead of identifying the correct distribution of these financial variables, many of these decision models (e.g. bankruptcy prediction, bond rating prediction, cost-volume-profit analysis and the cost variance investigation decision) have simply adopted an assumption of normality. This is contrary to the empirical evidence which has suggested that some of these input variables are non-normally distributed. The reason for this common adoption of the normal distribution assumption could be attributed to the lack of knowledge regarding the appropriate distribution function for the variable. In order to encourage the use of the appropriate distribution function for the required financial variable, this paper examines this aspect. The objective of this study is to assist in identifying an appropriate distribution function for modelling non-normally distributed accounting variables. A three-step procedure is described and actual cost variance data of a Fortune 500 company's manufacturing plant are used to illustrate the procedure. © 1993 Academic Press. All rights reserved.
Persistent Identifierhttp://hdl.handle.net/10722/177826
ISSN
2015 Impact Factor: 1.34
2015 SCImago Journal Rankings: 0.711

 

DC FieldValueLanguage
dc.contributor.authorGribbin, DWen_US
dc.contributor.authorLau, AHLen_US
dc.date.accessioned2012-12-19T09:40:28Z-
dc.date.available2012-12-19T09:40:28Z-
dc.date.issued1993en_US
dc.identifier.citationThe British Accounting Review, 1993, v. 25 n. 1, p. 3-15en_US
dc.identifier.issn0890-8389en_US
dc.identifier.urihttp://hdl.handle.net/10722/177826-
dc.description.abstractMany studies have indicated that many financial and cost variables are non-normally distributed. For example, empirical studies of financial ratios and cost variance data have found non-normality. However, instead of identifying the correct distribution of these financial variables, many of these decision models (e.g. bankruptcy prediction, bond rating prediction, cost-volume-profit analysis and the cost variance investigation decision) have simply adopted an assumption of normality. This is contrary to the empirical evidence which has suggested that some of these input variables are non-normally distributed. The reason for this common adoption of the normal distribution assumption could be attributed to the lack of knowledge regarding the appropriate distribution function for the variable. In order to encourage the use of the appropriate distribution function for the required financial variable, this paper examines this aspect. The objective of this study is to assist in identifying an appropriate distribution function for modelling non-normally distributed accounting variables. A three-step procedure is described and actual cost variance data of a Fortune 500 company's manufacturing plant are used to illustrate the procedure. © 1993 Academic Press. All rights reserved.en_US
dc.languageengen_US
dc.publisherAcademic Press. The Journal's web site is located at http://www.elsevier.com/locate/baren_US
dc.relation.ispartofThe British Accounting Reviewen_US
dc.titleA General Approach To Modelling Non-normally Distributed Cost Variance Data: An Illustrationen_US
dc.typeArticleen_US
dc.identifier.emailLau, AHL: ahlau@business.hku.hken_US
dc.identifier.authorityLau, AHL=rp01072en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1006/bare.1993.1003en_US
dc.identifier.scopuseid_2-s2.0-0010116946en_US
dc.identifier.volume25en_US
dc.identifier.issue1en_US
dc.identifier.spage3en_US
dc.identifier.epage15en_US
dc.publisher.placeUnited Kingdomen_US
dc.identifier.scopusauthoridGribbin, DW=10639017100en_US
dc.identifier.scopusauthoridLau, AHL=7202626080en_US

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats