The basic characteristics of generally accepted accounting principles

Staff Accounting Bulletin No. Securities and Exchange Commission Action: Publication of Staff Accounting Bulletin Summary:

The basic characteristics of generally accepted accounting principles

It aims at improving the general manufacturing process with a view to improving productivity.

[BINGSNIPMIX-3

It is also concerned with formulating proper work procedures so that materials will flow uninterrupted. It lays emphasis on scientific methods of doing things rather than the use of personal intuition, experience, practice and guess work. He was described as the Father of Scientific Management.

He was born in Boston, Massachusetts and started work as an apprentice in engineering. He spent most of his time working and achieving greater efficiency at the shop-floor. His solutions to problems of efficiency were from his own practical experiences. He rose through the ranks to become a Manager in the Midvale Steel Co.

He also worked with Simonds Rolling Machine Co. It was at Bethlehem that he conducted experiment on how to improve labour productivity. He consolidated his ideas into a book — The Principles of Scientific Management [].

Taylor contributed to the study of management in the following areas: According to Taylor, the success of the above principles required a complete mental revolution on the part of management and labour. This required substituting facts or scientific method for intuition, opinion and guesswork.

Taylor was concerned with finding the one best way to perform a task. His basic philosophy of work was based on motivation. He believed that prosperity of both the employer and the worker could only be achieved through maximizing productivity.

Taylor suggested that organisations would be more efficient if their knowledge, experience and practices were analysed and the best methods established by management. Managers now apply the principles of division of labour and specialization.

Managers now design an organizational structure, recruit workers and fit them into the organization with well—defined roles and responsibilities.

The Ten Generally Accepted Accounting Principles ( GAAP) - Invensis Technologies

Managers at the shop—floor of manufacturing concerns now appreciate correct sequence of manufacturing operations through appropriate plant layout- product, process, fixed position etc.

Using time study as a base, he broke each job down into its components and designed the quickest and best methods of doing each component of the job[task] the conclusion was that, he was able to allot the optimum time for performing a task given the equipment and material on hand.

He also recommended appropriate compensation for more productive workers in relation to others based on a scientifically correct rate that would benefit both the worker and the organization. The Gilbreths [husband and wife team] The Gilbreths are credited with motion study even though Taylor mentioned it in his work.

Motion study [movement on task] is the science of reducing a job or task to its basic physical motions. It is regarded as the cornerstone of scientific management.

In consultation with their senior colleague, Taylor, the Gilbreths were able to reduce the number of movements in laying bricks from 18 movements per brick to 5 movements per brick. In this way, individual output increased from to bricks laid per hour.

The Gilbreths were concerned with the application of measurement to management and abiding by the results. They were also concerned with finding the one best scientific way of doing things.

As employers, they did their best to practice what they preached.FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD FASAB FASAB Handbook of Federal Accounting Standards and Other Pronouncements, as Amended as of June 30, SFFAC SFFAS Interpretations If this assumption is incorrect or untenable for a particular company (think of a liquidation or a fire sale), then the methods prescribed by Generally Accepted Accounting Principles (GAAP) for accounting for various transactions would need to be adjusted, with consequences to revenues, expenses, and equity.

Glossary of Commonly Used Accounting Terms. Whether completing undergraduate work or preparing for the CPA exam, accounting students have told us that a glossary of terms is never far from their side.

The A1 suffix is typically seen as part of an application identification number or grant number and “A1” is often used to refer to a new, renewal, or revision application that is amended and resubmitted after the review of a previous application with the same project number.

The basic characteristics of generally accepted accounting principles

MGT Principles of Management 1 Table of Contents CHAPTER ONE: MEANING, NATURE AND SCOPE OF MANAGEMENT .. 4.

The basic characteristics of generally accepted accounting principles

Complexity characterises the behaviour of a system or model whose components interact in multiple ways and follow local rules, meaning there is no reasonable higher instruction to define the various possible interactions..

The term is generally used to characterize something with many parts where those parts interact with each other in multiple ways, culminating in a higher order of emergence.

Basic Accounting: Assumptions, Principles, Constraints | Accounting, Financial, Tax