Do #2 in Critical Thinking Analysis chided for allowing Halliburton to book a per-struction company, andits auditor,projects were completed, but before both agreed settlements with customers and,centage of cost overruns that Halliburton attempted to collect from customers afterof course, collection thereof. The practice of trying to collect cost overruns in theconstruction industry is not uncommon. Until 1998, cost overrun collections werenot booked until received. Since that time, Halliburton "began guessing how muchof a disputed surcharge would ultimately get paid and crediting itself in advance."a. Is there a case that can be made for allowing Halliburton to book these over-runs? What arguments, if any, support Halliburton's accounting methods?b. What situations should prevent Halliburton from booking these overrunsprior to collection?Critical Thinking and Analysis1. How permanent do you think the postulates and principles underlying historicalcosting will be?2. If you could relate materiality, disclosure, and conservatism to types of measure-ments (nominal, ordinal, interval, and ratio scale), how would you?3. Zeff (2007) describes the SEC's positions regarding historical costing in the 20thcentury, eventually questioning whether the United States has ever "had a private-sector process for establishing 'generally accepted accounting principles."" To whatextent do you agree/disagree with Zeff's point?

You may find out how accurately variables are recorded using levels of measurement, also known as…

2. If you could relate materiality, disclosure, and conservatism to types of measure- ments (nominal, ordinal, interval, and ratio scale), how would you? Zoff (3007) docoribon the SEC's positions regarding historical costing in the 20th 2

2. If you could relate materiality, disclosure, and conservatism to types of measure- ments (nominal, ordinal, interval, and ratio scale), how would you? Zoff (3007) docoribon the SEC's positions regarding historical costing in the 20th 2

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 26P

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