Chapter 2

Behavioral Science Concepts & Perspectives

“Behavioral science encompasses any field of

inquiries that studies, by experimental and
observational methods, the behavior of man in
the physical and social environment.”

The objective is to understand, explain and

predict human behavior to establish
generalizations about human behavior that are
supported by empirical evidence…”
 Scope and Objectives of Behavioral
Accounting
• Accounting focuses on measuring firm
performance.
• Firm performance is affected by human
behavior.
• Future behavior is affected by past behavior.
• Behavioral accounting studies the relationship
between human behavior and accounting.
 Behavioral Accounting
• Behavioral accounting is a subset of both
behavioral science and accounting.
• Behavioral accounting is applied and practical.
 Role Theory
• Role is a part that people play in their
interaction with others.
• Social role
• Identity
• Failure to play the role is not tolerated.
 Culture
• Culture is a way of life of a society.
• Work environment
• Organizational climate
• Business culture
• Idealistic vs. Materialistic Framework
• Interactionist framework
Chapter 3
 Attitudes
• Attitudes are learned tendency to react in a
consistently favorable or unfavorable manner
toward people.
• Attitudes predict behavior
• Components:
– Cognitive,
– Emotional,
– Behavioral.
 Functions of Attitudes
– Understanding
– Need satisfaction
– Ego defense
– Value expression
 Attitude Change Theories
• Stimulus-response and reinforcement theories
• Social judgment theory
• Consistency and dissonance theory
• Self-perception theory
 Motivation
• Need theories
– Maslow Hierarchy of Needs
• Expectancy theory
 Perception
• Perception is how people see or interpret
events, objects, and people.