San Diego State University Operations And Supply Chain Management Assignment Help - Investment
Question - Cadenhead presented an approach to uniformity referred to as circumstantial variables.
Circumstantial variables are environmental conditions (conditions beyond the control of the individual firm that
are applicable to the particular industry that the firm is in).
Circumstantial variables lead to problems relative to either (1) costliness of the prescribed method in the
particular event situation or (2) a low degree of verifiability because estimates vary widely relative to the
prescribed method. For example, Cadenhead notes that the existence of a ready market with regularly quoted
prices would facilitate inventory valuation if realizable value were not used relative to inventories, but the
absence of such a market would allow a firm ...Read More
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