Tuesday, December 06, 2005

Accounting for Economics

I'm finishing up my Management Accounting and Management Economics courses. I'll probably get a B in the first and an A in the second. I'm disappointed at the B, but I have some really good sounding excuses. It will be my second B in the program (first was statistics). Overall, not too bad. I've heard rumors that you're allowed to make two C's, my employer only looks for an overall GPA of 3.0, which should create no problem.

The accounting class is NOT a bunch of forms and stuff. Very little on the debits/credits. It's more decision oriented. For example, if you make widgets and get a special order for 1000 widgets at a discount price, should you accept the order? It all depends and that's what we study.

The economics class is sorta the opposite. Assuming you make widgets, how much should you charge for them? What will give you the most profit? Will accounting profit be more or less than economic profit?

There are lots of issues between accountants and economists. It's fun to take both courses at once and see how the professors deride the other profession. And to know, they could change hats tomorrow and never miss a beat. Reminds me of a football rivalry....

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