Conventional wisdom and costing practices

Abstract

This paper reports results from a study of the parallel development of textbooks used in cost accounting and of costing practices in Norway during the period from 1936 to the present. All the major textbooks used in this period are examined with respect to content and influences. The findings show that the period can be divided into three phases. The first phase is characterized by the German influence. The second phase is a mixture of the German tradition, Danish and U.S. influence, and the third phase is dominated by the U.S. influence. This development is linked to three survey studies of costing practices in Norway (1948, 1963, 1993), all of which include the largest manufacturing companies in Norway. These studies show a development that is consistent with the corresponding development in the textbooks. The paper emphazises how the changes made in textbooks correspond with the changes found in practices, and not the gapper se. The similarity in the developments shows that conventional wisdom may have played an important role in the institutionalization of costing practices. However, today's costing practices in Norway are more heterogeneous than the U.S. oriented conventional wisdom found in textbooks. This may be explained by the lack of a strong costing tradition in Norway and the fact that it is easier to change textbooks than costing practices.