I May Be Wrong, But I Doubt It: How Accounting Information Undermines Profitability
Does GAAP-based financial accounting motivate decision makers to take actions that undermine their organization's profitability? Are decisions based on cost information derived from a company's financial accounting system being based more on fantasy that fact? In this book, decision costing consultant Doug Hicks draws your attention to the fallacy behind many of accounting's fundamental tenants when they are applied to the economics of decision making. These include the evils of EBITDA, the irrelevance of depreciation, the deception of profit as a percentage of sales, and accounting's inability to accurately segregate investments from expenses. He also discusses how these accounting shortfalls have driven business executives to treate their organizations as if they were simply games, not value creating entities on which investors, vendors, families, communities, and our national economy all depend.
- Electronic book text
- 02 Sep 2010
- Morrisville, NC, United States