Managerial Economics and Globalization - 997 Words

ECO 550: Managerial Economics and Globalization Assignment 3 Instructor: Dr. A. A. Boakye Due By: 08/08/2011 Candidate’s Name-Andre Stevenson INSTRUCTIONS: Answer ALL the questions in PART I and PART II Part 1 (40 points) 1. The WXY Corporation has fixed costs of $50. Its total variable costs (TVC) vary with output as shown in the following table. Refer to the table. The average total cost of 4 units of output is A. $27.50 B. $40.00 C. $52.50 D. $210.00 2. to scale as it increases its output over any reasonable range. If it increases all its inputs by 10%, its Suppose a particular firm exhibits constant returns A. total cost will increase by less than 10% B. average total cost will increase by†¦show more content†¦If Driver #1 drives left (0,-1000) he will get the same results if Driver #2 drove left (0,-1000). It would be the same result for the right seat for both drivers as well. There is no room for any type of strategy and ultimately no matter which side of the road either drives on they will both equal the same numbers in the results. b. Is there Nash equilibrium in this game? Explain--- there is Nash equilibrium in the above example because no player will benefit from changing their strategy. No matter what information they receive they can no outsmart the other and create some type of advantage. c. Explain why this game is called a cooperative game? Although both Driver 1 and 2 will have a Nash equilibrium whether they choose right or left side of the road it’s still considered a cooperative game. The reason for this is because whether both drivers select left or right side there will still be equilibrium and no desire to change their strategy. Quest1ion 2: Use the table below to answer the following questions. [pic] a. What is the firm’s Total Revenue? In relation to the chart above Total Revenue will be inside the area of the box starting from O-E-J-A. Total Revenue in general is the price of a good or service multiplied by the quantity of the product. b. What is the Total Cost? Total cost is fixed cost and variable cost added up together. It’s the cost that it takes toShow MoreRelatedManagerial Economics and Globalization Eco 5501234 Words   |  5 PagesMaking Decisions Based on Demand and Forecasting Week 3 Assignment Managerial Economics and Globalization ECO 550 May 9, 2013 Making Decisions Based on Demand and Forecasting Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables. As the Marketing and Public Relations Manager for my community, I am conducting research about the demographics of our community. My research will be basedRead MoreAssignment 1 : Managerial Economics And Globalization1338 Words   |  6 Pages Assignment #1: Demand Estimation Richard W. Gaines Strayer University ECO 550 – Managerial Economics and Globalization Dr. Diana G Bonina October 24, 2017 â€Æ' Assignment #1: Demand Estimation Employ this regression equation: Qd= -5200 - 42P + 20PX + 5.2I + 0.20A + 0.25M and compute independent variable elasticities for a leading brand low-calorie, frozen microwavable food company using the following information. Q = Quantity demanded (3-pack units) P = Price = 500 cents PX = Leading competitor’sRead MoreAssignment 2 : Managerial Economics And Globalization1759 Words   |  8 Pages Assignment Two: Operations Decisions ECO 550- Managerial Economics and Globalization Alisha Ball Dr. Agnes Denalane Strayer University Assignment 2: Operation Decisions Introduction In today’s retail food service industry there is a large demand for convenience food. People take less time to cook and with the increase of health issues related to weight management, low calorie options are becoming very popular. 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Outline and Assess the Usefulness of Official Statistics...

Outline and assess the usefulness of official statistics of crime to sociologists. There are three main sources of information about the crimes for sociologists – the official crime statistics, which are collected by the police and are presented as secondary data for sociologists; victim survey such as British Crime Survey, which is also collected by the police and sponsored by the government, and in order to collect primary data sociologists use self-report studies and its aim is to uncover the true amount of crime in the society. OCS are a source of secondary data, therefore it can be trusted as it has been verified before by other researches and are accepted by some sociologists uncritically, for example functionalist sociologists†¦show more content†¦Also the representativeness is questioned because all crimes cannot be included in a questionnaire as the researcher has to be selective, so as a result some people may have committed a crime, but they can neither report it because of fear of being fined or put in jail nor because it is not included in the questionnaire. This means that the number of crimes in statistics will be decreased, however it will not represent the reality. In addition to this problem, mainly the youth are questioned as the BCS 2007 states that most of the crimes are committed by males aged from 15 to 25 and by females aged from 13 to 19 in England and Wales, therefore the rest of the population is not included and the concept of â€Å"white collar† crime is created, wh ich is middle classed people not admitting their crimes, therefore this information cannot be generalized among the population. As separate pieces of the research, all of the methods have their own advantages, however there are mainly disadvantages that make all of them either invalid or unreliable and nor representative. However if all these methods were combined into one – a mixed method research, all the qualities of the researches could have gone up, therefore it could have been even more useful to sociologists. 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Crime and Deviance Different theories of crime, deviance, social order and social control. The social distribution of crime and deviance by ageRead MoreSociology Essay20437 Words   |  82 Pagesfamily. (4 marks) As the question asks for ‘two functions’, you will be awarded 2 marks for each accurate function provided, which should include a brief explanation. Refer to Unit 1.2, page 25, as well as textbook, page 59. The functionalist sociologist Parsons (1959) argues that the family has two key functions: (i) primary socialisation and (ii) stabilisation of the adult personality (the ‘warm bath’ theory). Aim to elaborate on both these functions. (c) Suggest three feminist views of theRead MoreEssay about History: World War I and Bold Experiments7600 Words   |  31 Pagesgives you the chance to make an educated guess. Be cautious of words indicating absolutes, like most, least, all, and none. Connect the specific information of the question to broader trends and themes. 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Corporate Governance Policies and Environment MyAssignmenthelp.com

Question: Discuss about the Corporate Governance Policies and Environment. Answer: Introduction: In relation to One.Tel, it can be observed that the company to establish its position in the market used several strategies and within a minimal amount of time; it became a massive company with an immense base of customers. However, in relation to the longer-run, the company was unable to sustain its position and therefore, it collapsed. Several factors would have contributed to an enhanced inherent risk assessment of the company at its financial report level. Firstly, it is notable that the management of One.Tel was completely incapable in performing their duties efficiently. There were major loopholes and the management was incapable of addressing the issue properly. Besides, if the management cannot assist in enhancing the companys affairs, it cannot progress until some corrective action is implemented. However, the management of One.Tel did not operate effectively, thereby contributing to an increase in the inherent risk of the company together with an inefficient internal control. Moreover, this incapability on the part of the management can also be witnessed from the companys financial statements, as they followed a strategy of management by crisis that was nowhere leading towards progress (Kaplan, 2011). In addition, the management also made sure to the company stakeholders that they had sufficient amount of resources to make the company run, but the scenario was completely the opposite. Secondly, despite suffering immense losses of approximately $291 million, the company took steps to pay dividends and bonuses to its shareholders. This gives rise to the fact that the companys Board of Directors were not operating in the best of the companys interest. In addition, this also concludes that the directors lacked efficiency and integrity that is very vital for the smooth running of a business (Bhasin, 2008). Therefore, since the directors were not effectively engaged with the management, various misleading information was provided to the stakeholders, thereby creating a massive havoc for the company. Hence, there appeared a bottleneck and a proper communication was missing that led to the issues. Besides, it was also proved in the year 1999 that the financial reports of the company incorporated around 48 flaws that clearly gives weight to the previously mentioned scenario. Deficiency in the financial report clearly indicates that the company has not performed to the best of the ability that calls for major attention by the management (Manoharan, 2011). Thirdly, it can be observed from the financial reports of the company that it was encountering the problem of lesser balance of cash and aging debtors, which proves that it was not operating appropriately. Moreover, such responsibility lies upon the companys chartered accountant, but in this case, he failed to indicate the company about such happening, thereby leading towards a more dreadful condition (Brown et. al, 2006). As a chartered accountant, a proper guidance should have been provided whereby the deviation should have been intimated and the same should have been addressed. However, the faulty planning and lack of attention made the condition worse. Fourthly, the true cash position of the company was not highlighted by the finance director of the company and was constantly influenced to portray a favorable image of the company in the eyes of the stakeholders. Moreover, the company was bound to implement proper due diligence process in order to encounter any such falsification of relevant information but it did not do so, thereby resulting in an increased inherent risk within the company (Elder et. al, 2010). In addition, the deferred expenses of the company were drastically enhanced that in reality was not needed at that point in time. Lastly, the board often attempted to publish an unqualified report to the stakeholders of the company that was a clear-cut fraudulent representation on the companys part. This is because after taking into account several inappropriate practices prevailing within the company, the opinion of auditors regarding the financial statements can never be an unqualified judgment. Besides, in the prevalence of a qualified report, it has an advantage of being reasonable. This factor clearly gives rise to a fact that the role of auditors within the company was completely questionable as they failed to perform their part of the duties in an effective manner. It is expected that the auditor will provide a true and fair view of the business and will spot any frailties in the organization (Goodstein, 2011). However, the same was absent. Moreover, their incapability to provide an independent judgment regarding the financial statements of the company played a key role in increasing the inherent risks o f the company. Besides, the stakeholders highly rely upon such auditors judgment so that they can determine whether the company is performing effectively in the market and whether the financial statements of the company are true to the best of their knowledge or not. Therefore, when such reports are misleading or misguiding in nature, the stakeholders are also misguided, and hence, they make inappropriate decisions based on such judgment, thereby creating a complication for the long run. It even reflects the ethical violation of the company and the failure of the internal control of the company to look into such issues (Kruger, 2009). In relation to the previously mentioned factors, some of them can be observed by examining the financial statements of the company. This process of examination refers to strategic business risk assessment wherein the flaws and pitfalls prevalent in the companys financial statements can be easily taken into due consideration. These factors are as follows: Firstly, deterioration in the profits of the company could have been easily noticed and corrective actions could be implemented in respect of the same, but the company failed to examine such factor, thereby making the problem increase to an infinite stage. Secondly, even after encountering an immense loss of $291 million, payments of bonuses and dividends came out as a shock, and it was the duty of the management to implement appropriate mechanisms to take care of such a problem but no corrective action was implemented and as a result, the company had to tackle disintegration in the long run. Lastly, the ineffective operation on the part of the management was required to be altered immediately so that the stakeholders can obtain effective information and results, but here again, there was no such step. The management contained huge frailties and failed to cope up with the scenarios that ultimately led to a huge downfall (Bhasin, 2008). In any scenario, the management must be well versed with the external and internal environment and a failure to cope up with the same leads to a decline in the functioning of the company. In relation to One.Tel, several factors contributed towards an increased assessment of inherent risk in their account balance level. They are as follows: Tel offered various services to its customers at casual prices that conclude the fact that the subscribers procured the services at a price, which was lesser than what the company was supposed to expend. Secondly, the company was already aware of the fact that there were around six competitors in the telecommunication industry, which gave strict competition to it, but still, it implemented an approach wherein high-quality services were provided to the subscribers at minimal prices (Heeler, 2009). Although such approach could be beneficial in the short run for the company, yet it could not play a relevant part in the end and therefore, the company failed to establish a dominant position in the Australian market. Thirdly, most of the strategies and measures of the company relied on Optus and Telstra who were the key competitors in the telecommunication business. This is because the company brought phones from such companies and sold to subscribers in wholesale quantities. Besides, the prices charged was lesser than what the company was supposed to pay. In contrast to this, both Optus and Telstra implemented ways for minimizing their operating expenses that provided them an added advantage. Lastly, the expenditures made by One.Tel was immense in nature in comparison to its financial abilities. The expenses were huge and became a burden on the company. The company failed to realize revenue and the expenses became huge on their part calling for necessary action. Therefore, this generated a huge risk for the company in terms of financial obligations in the future. In addition, the company also did not procure access fees from their subscribers that played a key role in enhancing the risks. This is because there was no surety that the subscribers would utilize the services offered by the company and expends resources for the same. In relation to the above-mentioned factors, the factors that can be observed during the assessment of strategic risks are as follows: Firstly, the credit checks procedure implemented by the company was very slow because most of the subscribers either did not pay their bill or paid their bills very late. As a result, this contributed towards a deterioration of the companys revenues, thereby creating various complications for the company to carry on its affairs in a smooth manner (Cook, 2001). It created a dent in the system and therefore, the company failed to realize the amount that ultimately affected the operations. Secondly, in order to enhance the prices of shares, the company provided dividends and bonuses to their stakeholders, thereby resulting towards an increase in the sale of the shares. However, such an approach could not be regarded an effective one because it was not generating profits for the company, as revenues came on one hand while it slipped out of the other. Besides, this can be proved by the fact that the operating profits of the company minimized from $11.3 million in 1999 to a negative amount of $262.4 million in the year 2000 (Cook, 2001). The company fabricated the entire matter so as to retain the investors. The dividends were declared and provided out of nowhere. The internal control mechanism was weak that failed to keep a check on the fabrications. Lastly, the retained profits of the company deteriorated on an immense level that concludes the fact that the same could have been easily observed but still, the company failed to do so. Moreover, both the figures of dividend and retained earnings depicted a huge fall on the part of the company, thereby proving the fact that the companys financial condition constantly deteriorated (Kruger, 2009). On a whole, all such factors could have been identified during the assessment of strategic risks within the company. After taking into account the financial statements of the company, it can be stated that it is very problematic for One.Tel to continue its activities in the end. This is because the situation of the company relating to its revenues is in a very bad position. The aging of debtors proves that the company will encounter problems to meet its debt obligations in the upcoming period. Moreover, an effective financial structure is needed to continue a business in the end and in this case, the management of One.Tel has provided misleading information to its stakeholders regarding their financials (Gilbert et. al, 2005). In addition, the reserves and parent equity funds have also been utilized by the company and are in negative figures in the current scenario. Therefore, all these factors conclude that the future of One.Tel is dark and it will surely encounter massive complications to continue its operations. Besides, in a going concern concept, a company concentrates on their short-term oper ation that is generally one year. In relation to One.Tel, it can also be observed that even though it publishes an unqualified auditors report to its stakeholders, yet it is dubious whether it can continue its affairs or not. This is because the companys statement of cash flow depicts that the share issues have immensely enhanced but this has been done through attachment of several benefits that altogether cannot be regarded as authentic in nature. Furthermore, in relation to the intangible assets of a company, these are very significant from the financial point of view because they are generated through innovation and possess an organizational influence on the Human Resource practices (Cappelleto, 2010). In addition, such intangibles also enhance the companys value even though these are non-material in nature. However, around 6% to 30% value of One.Tel is generated through its tangible assets while 40% of its assets are intangible. This proves that the companys structure is kept according to the wishes of the manage ment so that they can utilize it based on their requirements to attain core competencies (Cook, 2001). Nonetheless, the affairs of One.Tel was effective because it endeavored to operate on a broader scale in the market in the prevalence of major rivals like Optus and Telstra. For such motive, the company offered enhanced facilities to its subscribers through the implementation of measures like low costs, internet services, etc (Kruger, 2009). The company aimed to procure the best outcomes through the provision of such facilities to their customers. However, because of the inefficiency on the part of the management, the company had to witness a drastic decline in terms of reputation and financial aspects as a whole (Fernando, 2009). In addition, the inappropriate financial statements of the company made its internal control measures questionable to everyone (Black, 2010). On a whole, based on the financial statements of the company, it can be clearly witnessed that the company is no longer in a position to carry on its affairs in the upcoming period, as its reserves are empty and profi ts depict a negative figure. Therefore, in lieu of faulty planning and management, together with improper due diligence processes, governance, and ethical standards, the company may soon be disregarded from the listing segment because it has not implemented any corrective actions as of now. Moreover, in the absence of inadequate resources, it may surely be very difficult to gain a competitive advantage in the business, that too in the presence of huge rivals. References Bhasin, M. L 2008, Corporate Governance and Role of the Forensic Accountant, The Chartered Secretary Journal, vol. 38, no. 10, pp. 1361-1368. Black, W. K 2010, Epidemics of Control Fraud lead to Recurrent, Intensifying Bubbles and Crises, Working paper, University of Missouri-Kansas City. Brown, J.W, Chasek, P. Downie, D.L 2006, Global Environmental Politics, Boulder, CO:Westview Press. Cappelleto, G. 2010, Challenges Facing Accounting Education in Australia, AFAANZ, Cook, T 2001, Collapse of Australia's fourth largest telco adds to growing list of corporate failures viewed 12 May 2017 https://www.wsws.org/en/articles/2001/06/onte-j08.html Elder, J. R, Beasley S. M. Arens A. A 2010, Auditing and Assurance Services, Person Education, New Jersey: USA Fernando, A C 2009, Corporate Governance Policies and Principles, Prentice Hall. Gilbert, W, Joseph J Terry J. E 2005, The Use of Control Self-Assessment by Independent Auditors, The CPA Journal, vol.3, pp. 66-92 Goodstein, E 2011, Ethics and Economics, Economics and the Environment, Wiley Heeler, D 2009, Audit Principles, Risk Assessment Effective Reporting, Pearson Press Kaplan, R.S., 2011, Accounting scholarship that advances professional knowledge and practice, The Accounting Review, vol. 86, no. 2, pp. 367383. Kruger, C 2009, Numbers finally start to add up as operators go back to basics, viewed 12 May 2017 https://www.smh.com.au/business/numbers-finally-start-to-add-up-as-operators-go-back-to-basics-20110121-19zy6.html Kruger, P., 2015, Corporate goodness and shareholder wealth, Journal of Financial economics, pp. 304-329 Manoharan, T.N., 2011, Financial Statement Fraud and Corporate Governance, The George Washington University.

Evaluation of article of Positive Accounting Samples for Students.

Question: What is the applicability of present positive accounting research? Answer : Introduction Positive accounting is a branch of academic accounting research that is contrasted with normative accounting(Bowen, 2008). The article Half a defense of positive Accounting Research by Paul V Dunmore examines the various concepts related to the scope of positive accounting research. The term positive accounting was formed and developed by Watts and Zimmerman who formed the theory. The scope of this paper evaluates a broader framework for understanding and applicability of positive accounting research in accordance to human behavioral setting(Lennox, 2011). Poppers falsification criteria fail to test logic for statistical testing and superficial analogues. Existing models and theoretical frameworks are rather casual in nature that has heavy reliance on testing hypothesis. The scope of this report identifies the framework for positive accounting research by completely reviewing of the article. The pertinent research questions are identified from the same article along with the theoreti cal framework and significance of the article(Malmi, 2009). The article has provided useful information and inputs for formation and growth of the stream of positive accounting framework. Summary of the Article The article evaluates relevant concepts regarding positive accounting in a broader sense with explanations in accordance to human behavior. Positive accounting is an extremely useful concept hence it is examined according to ontology and epistemology of the program(Gaffikin, 2007). While defining positive accounting it has to be accommodated that it incorporates a wider framework of research which is scientific in nature and analyses by means of cause-and effect relationships(Smith, 2014). Accounting in contemporary organizations involves less human interventions and more of interpersonal complex systems that are used for decision making and information processing. Conducting accounting research by way of ontology and epistemology enables overcoming shortfalls and challenges incurred in positive accounting research(Hopwood, 2007). Positive accounting research has been conducted by multiple researchers has been unable to explore and make contribution towards application of projects. Auditing literatures will be able to make positive contribution towards development of positive accounting research. Through well-established social systems positive accounting research will be able to achieve its real purpose. Kuhn (1970) initially suggested a concept for a disciplinary matrix approach which rather appears to be a paradigm for making an intellectual contribution(Dunmore, 2011). Lee (1997) also supported the paradigm proposed by self-replicating such data. The article is based on scientific proceeding by incorporating in random data collection with reliable information. There has been various positive research in accounting undertaken by Watts and Zimmerman. Their contribution is remarkable as they devised a theory for it by expressing an operational phenomenon. However, there are a large number of controversies on this given model as it is a fundamental model which cannot be defended in qualitative terms(Gow, 2010). The ways that managers deploy in for making decisions depict that there might be a number of ways in which accounting information might be presented. The usefulness of this article is in examining the gap that exists among positive accounting research and the applicable research which are practiced. Kuhn proposes a real world view of the aspect of positive accounting unlike Popper, who had proposed hypotheses for testing and applicability. Popper believes that testing of hypotheses and analyzing their results can yield valuable insights into accounting practices. The scope of this research proposes a puzzle that can be solved and applied by researchers in the field. Positive accounting research can be viewed as a nexus of contractual view of the company by providing an accounting tool for facilitation and performance. The publication made is complaint paradigm that established high rejection rates. Thus, from the findings of the research it can be established that Type I error is new and unexpected in nature thus, can make significant contribution. Many researchers who view positive accounting to be deficient can make use of this journal and extend the work. Poppers criteria is focused on falsification and hypothesis testing through collected data. There are many researchers who rely on statistical procedures for testing their claims and in building of theories. But there are several potential weaknesses associated with the statistical procedure itself. Hypothesis testing fails due to technical issues multiple number of times. Comparison with Pioneer anomaly further reveals the weakness associated with the results. However, as accounting data is subject to a series of measurement error and noise there remains role for statistics in positive accounting research. but the central theme of utilization of statistics should be to apply it in making of estimation rather than incorporating in for hypothesis testing procedures. Positive accounting research provides a wider endeavor that is scientific in nature, for incorporating in human behavior and in understanding complex behaviors of organizations. In practice world decisions are influenced by way of control systems and specialized information, thus it cannot have weak methods for drawing inferences. Positive accounting research needs more of theoretical models that can have applicability, they need to also provide scope for improvement. Further these models needs to be as accurate as possible in nature, either horizontal or linear in approach. Theoretical models needs to be tested and developed with experimental capabilities hence have to have an analytical approach. But the scope of positive accounting research has remained aloof from empirical tests. Models proposed by Feltham and Ohlson (1995) offer some path for testing their propositions. Focus of positive research needs to be on measurement which offers shift from testing. Choi et al. (2009) offe rs audit complexity and strength from legal regime which are related to each other. Hence, while testing and measuring concepts needs to be detailed and cleared for understanding. Thus, all the studies conducted are more replication after replication rather than proposing something new. The objective behind replication is to explore the limits of previously suggested models and reflect on the sampling errors of them. Thus, extending the approach of earlier research work done and providing applicability for the same. Research The scope of this study and article has evaluated various pertinent research questions that have been evaluated throughout the scope of the research(Kabir, 2011). Some pertinent theoretical questions are as follows; Theoretical Framework The thesis statement proposed in contemporary accounting research evaluates mechanisms that shape financial statement information making approaches(Ahmed, 2007). The first approach discussed here is focused on investors while the second one is focused on managers. Hence, the first approach proposes that financial statements are for investors, this is the main approach identified by primary accounting research. This views has also gained support from financial reporting standards setting boards and key textbooks for accounts. Thus, the primary focus of the theory remains that investors are the audience for financial statement information. Therefore, it draws from this that financial statements need to be regulated that can protect investors from frauds and conspicuous reporting(Larcker, 2010). But then also investors do not base their decisions solely on financial reporting and capital markets functions as avenues that help mitigate financial risks. While investors avert opportunists views of managers the sole reliability of the theory is to protect the status of investors. Thus, arises scope for providing an alternate way whereby a separate point of view can be established. Fundamental requirement for critical qualitative research for theoretical models has to provide applicable limits. Hence, studies needs to valuated competing theories while treating a theory that can examine wider data sets(Kothari, 2010). Through positive accounting human behavior or approaches to accounting can be established. There are theories present which cannot be challenged and applicability is assumed compared to evidencing them. The outputs from these various theories consists of uninterruptable coefficients that might or might not be consistent across samples. Hence the need for a theory was released and positive accounting theory was established(Bisman, 2010). Significance and Limitations of the Article The significance of this article is in approaching positive accounting research by way of ontology and epistemology which had not been attempted earlier(Oler, 2010). The new line of research was extremely powerful in determining ways and means that accounting can progress. The research done within the article has made several serious contributions as mentioned below; It has been identified that there is a need for development of a theoretical model that can be highly specific and vulnerable(Barth, 2008). There was a need of a model that can be applied and be used for further research of scholars. The need of a model which can easily be tested and structured was high as it was insufficiently developed. The model has provided means for measurement that can be operationalized. While selecting a model for application functional attributes of the same needs to be formed and linear relationship with other concepts needs to be made(Melis, 2007). The reliable measure can act in favor of audit as well by depiction of correct parameters. While most models deals with testing of hypothesis, this model proposes parameters for measurements. Measurement with significant skill and results was estimated by use of this model(Tjosvold, 2008). Finally the article provides validation of conclusion from testing of hypothesis for confirmation of accuracy for extending limits of research. Conclusion The area of positive accounting research has made tremendous contributions to wider number of projects due to its applicability. The key objective of the paper is to identify the various forces that help shape financial statement information. There are two viewpoints that have been analyzed in the study. While predominant research in the field suggests investors viewpoint being the key driving force, the scope of this paper examines epistemology and ontology of positive research. The paper addresses the key gap areas which current researches in accounting does not account for a successful research program. Though there remain several suggestions for quantitative positive research, yet there remains to be a need for theoretical models that are specific and vulnerable for detailed testing purpose. As several models in is positive accounting research have failed to make serious impacts, accounting relationships are merely expressed in terms of signs that can link two variables. There is immense number of elaborate models for the purpose of analytical research but they are not structured well such that they can be implemented or can be operational in nature. Hence, the paper draws on a stable model that can function well and be applied in the aspects of positive accounting research. The scope of this paper might not be provide much enhancement to the human knowledge but will be useful for researchers who are willing to make positive contribution in the field. Reference Ahmed, A. S. (2007). Accounting conservatism and board of director characteristics: An empirical analysis. . Journal of accounting and economics, 411-437. Barth, M. E. (2008). International accounting standards and accounting quality. Journal of accounting research, 467-498. Bisman, J. (2010). 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