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Monday, February 11, 2013

Modern Accounting Systems

Modern Accounting Systems

Brenda Sheets

Principles of Accounting I

Sheryll Dahlke

October 10, 2011

Modern Accounting Systems

When you study of account, some people think about a manner full of accountants sitting around their desks with adding machines and using pencil and write up to do paper financial statements. With the advancement that technology brings in todays financial world that is no extended the case. The computer has accounting softw ar that now most demarcation use to compute their financial statements with and also usually expert have a Chief Financial Officer and perhaps 6 or 7 employees who handle different proceeding in the business office. I intend to go into the innovative era of accounting to show what has changed since the days of our ancestors.
Before the class 1800 there was virtually no interest in identifying and managing bell of a business. Cost accounting principles and practices developed rapidly during the ahead of time 1800s. Prior to that date, truly little effort was made by business owners to classify and manage various costs.

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(King, Permo, Case)
There are lots of people who think that cost accounting did non come into existence until after 1800 (Previts& Merino, 56) According to King, there is very little information available on cost methodology during the 1870s. The reason for this is that cost identification and accumulation methods were consider industrial secrets. (King, Perm, Casey) The people of that era were generally afraid that if there was a lot of information published about cost accounting that competitors would discover their practices. (King, Permo, Case)
Fleishchman and Parker believe that early cost techniques contained significant deficiencies including the leave out of manufacturing costs that flowed through general ledger accounts, no consolidation of manufacturing costs with financial reporting, and the general lack of utilization of cost as a management control tool p.24).
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