What is behavior accounting?
Behavioral Accounting is a method of recording money and money management, which attempts to assign the value of the company based on the values and behavior of the responsible persons. Sometimes it is referred to as "Human Resources Accounting" because it is based on human behavior and decisions, unlike other accounting methods, which are usually based only on the expenditure and profits associated with the company. It is, especially for large companies, impossible to make judgments about the values and behavior of each individual, so that behavior accounting is generally based on the behavior of leaders and primary decision staff of the company. The aim of this accounting method is to represent the value of the human aspects of the company on the parties, potential investors and other stakeholders.
The importance of behaving Behavioral can be easily described by considering two companies that are identical in every respect in terms of expenditure, profits and all othernehuman variables. An individual who tries to decide which to doSTI will invest, it may have a difficult time, because on the basis of conventional accounting methods both companies look the same on paper. However, the use of methods of behavior accounting may indicate a potential investor that the leaders of one company tend to demonstrate better decision -making and hold better values than the other company. In some cases, this method of accounting may reveal the value of the company in a manner that exceeds the number of costs and expenditure on paper.
Transparency is an important part of behavior accounting because it prevents the creators of business decisions in hiding for reports on costs and numbers on paper. While behavior accounting may reveal that the company's success has occurred due to excellent and well -informed decisions of key creators of decisions, it may instead reveal that the success of the company has been despite poor decision -making. This transparency gives the parties to the partiesIM and investors a much clearer view and understanding of the company they decide to support.
Behavioral Accounting is a common area of study in business research due to the importance and difficulty associated with assigning the value of the human aspects of society. Such research is often a multidisciplinary nature, because sociology, psychology and mathematical methods in accounting are often important and relevant. For example, scientists in accounting behavior may try to develop efficient and useful methods to measure the value of an entrepreneur over time by taking into account any main decision that makes.