CONCEPTS OF ACCOUNTING FOR THE COST AND ACCOMPLISHMENT OF PUBLIC PROGRAMS

• NCJ Number: 66120
• Journal: GAO Review Volume: 12 Issue: 4 Dated: (FALL 1977) Pages: 59-70
• Author(s): ANON
• Date Published: 1977
• Length: 12 pages
• Corporate Author: US Government Accountability Office
• Publication Format: Article
• Language: English
• Country: United States of America
• Note: PUBLISHED IN SUPPLEMENT TO VOLUME 47 OF THE ACCOUNTING REVIEW, BY THE AMERICAN ACCOUNTING ASSOCIATION, 1972

Annotation

OF SPECIAL INTEREST TO GENERAL ACCOUNTING OFFICE STAFF MEMBERS, THIS ARTICLE DISCUSSES ACCOUNTING CONCEPTS FOR DETERMINING THE COST AND ACCOMPLISHMENTS OF PUBLIC PROGRAMS.

Abstract

CONCEPTS OF COST IN PUBLIC PROGRAMS ARE DISCUSSED, INCLUDING ACQUISITION COST (COSTS ASSOCIATED WITH ACQUIRING GOODS AND SERVICES), APPLIED COST (PORTION OF ACQUISITION COST APPLIED TO A PARTICULAR PROGRAM), REPLACEMENT COST (COST OF ACQUIRING AN EQUIVALENT ASSET), PROGRAM COST (COST APPLIED TO A PARTICULAR PERIOD OF OPERATIONS), SOCIAL COST (PUBLIC SACRIFICE TO SUPPORT PUBLIC PROGRAMS), AND TOTAL COST TO THE GOVERNMENT). PROGRAM COSTS PLUS ADMINISTRATIVE OVERHEAD OR GENERAL GOVERNMENT) ASSETS AND EXPENSES ARE ALSO EXAMINED, AND MEASURING THE ACCOMPLISHMENTS OF PUBLIC PROGRAMS IS DISCUSSED IN TERMS OF THE RELATIONSHIP OF ACCOMPLISHMENT TO OBJECTIVES AND THE CRITERIA FOR EVALUATION OF OBJECTIVES. SOME MEASURES OF PROGRAM ACHIEVEMENT ARE OPERATIONS INDICATORS, MEASURES ASSOCIATED WITH ACTIVITY OUTPUTS; PROGRAM IMPACT INDICATORS, MEASURES RELATED DIRECTLY TO A PUBLIC NEED OR POLICY INTENT; AND SOCIAL INDICATORS, WHICH REFLECT CHANGES IN SOCIAL CONDITIONS RESULTING FROM A COMBINATION OF PROGRAMS. SINCE GOVERNMENTAL PROGRAMS ARE NOT NORMALLY UNDERTAKEN TO PRODUCE REVENUE, THE ACCOMPLISHMENT OF ANY PROGRAM REQUIRES MEASURING THE PUBLIC GOOD THAT RESULTS. HOW SUCH RESULTS CAN BE PROCESSED THROUGH THE ACCOUNTING SYSTEM IS DISCUSSED. (RCB)