My general response to Hopwood's paper is very favorable. For one thing, it signifies the movement of accounting from the area of the sacred to that of the secular-a transition long overdue. In other words, Hopwood prefers constructive questions to unquestioning assumptions and prefers testing alleged values to assuming their fulfillment. His research exemplifies these preferences consistently and well. Having said that much, and meant it, I want nevertheless to offer some criticisms of the research, both for what it is and what it is not. Let us begin with what it is, substantively and methodologically. It is a quantitative study of how accounting data are used in evaluating the performance of managers. More specifically, the research is built around a comparison of three styles of such use-the budget-constrained, the profit-conscious, and the nonaccounting. There are several problems with these categorical concepts. First, life is not so purely typological, a difficulty with which Hopwood deals by introducing the hybrid style that is both budget-constrained and profit-conscious. Second, there is a confusion of the budget and profit orientations with time orientation-short-term versus long-term approach to the managerial function. (It may be argued, of course, that the budget orientation is intrinsically short-run and the orientation toward profit intrinsically longer-run, but I think this would be better treated as an empirical question than as a matter of assumption or definition.) Third, the nonaccounting category emerges as a rather unsatisfactory residual type; so much is relegated to it that definition becomes very difficult, as Hopwood points out. Finally, the conceptual distinction between the budget and profit orientations does
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