Publication Date



Using an environmental contingency approach, Johnson and Kaplan [1987] argued that virtually all management accounting practices used at the time of their study had been developed by 1925 in response to increased uncertainty caused by geographical expansion and large-scale operations. During the 1821 to 1860 subperiod, the Hudson's Bay Company had significant uncertainty which was largely a result of the dynamic environment of its fur-trade operation. Consequently, it should have developed management accounting practices in response to uncertainty. Moreover, the management accounting practices should have been less extensive in the subperiods before and after 1821 to 1860, as these subperiods had less uncertainty. The Company's accounting and related records were examined for 1670 to 1914, and provided evidence to support the contention of Johnson and Kaplan that management accounting practices evolved positively with uncertainty.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.