| Is possible to improve the accounting standards? Free thinking opens wide spaciousness for creating, developing, sharing, distributing & exporting owns new ideas & innovations, which related to extend information capacity & rise efficiency of analytical accountancy. Accounting standard sometimes leads to confusion of that it’s perfect in every way, & which impossible to suggest self-opinion rather feasible, simple & understandable methods of accounting cognition in parallel with enforcing accounting regulations, actually working by rote as established financial & accounting standards bridles after careful self-consideration, renewal, reinvent oneself new ideas etc. One’s property of accountancy as its everyday occurrence repeats & also monotonous condition of accounting accommodates accountants to way of work to while his/her time away. Accountants should make self-analysis & self-perfecting in order to keep abreast of social-economical boom & predict upcoming threat, contingency recession, & avoid any unbeatable force & silly convert misleads & difficulties into doing management superiority. We really have full confidence, we are the first researchers who put perfect new ideas & renewals into contents of over all subjects of cost & managerial accounting independently, especially topics of variance analysis on manufacturing overhead, which calls real account of researchers as pending theme of accountancy & analyzing. Learners often outspoken of that, occur troubles to understand, well-consider, memorize also use in practice simplify if refer as to study variance analysis of mixed expenses (factory costs & operational expenses), which has been illustrated in many well-known fundamental textbooks issued by oversea famous universities. Taking into account this situation I have decided to implement elaborated analysis on allocation, isolation, budgeting, behavior forecasting, controlling, empiric analyzing of mixed expenses (manufacturing overhead, operating expenses-general administrative & marketing). The methods created along with my family members have following obvious differences & appreciable advantages over others used at present time in training, meantime the first we have put into practical application of linear algebra transformation & elementary differential calculus in cost & managerial accounting modeling uniquely & extraordinarily: · We used to describe financial process, cost behavior, accounting indicators mainly be means of simple straight linear equation: y = a +bx or y = a+bx1+cx2+…+nxm, but however their dynamic evolution mathematically expresses as of multiple curvilinear dependence y = a+bx+cx2+…+nxm, logarithmic function & exponential equation y =Aox1ax2b…xnm. Besides dependence some financial indicators denotes via inverse proportion to each others, namely in accordance with increase of selling revenue drops expenses on marketing y = a+b/x, also herein possible to refer to learning curve, which illustrates that if labor cost downs by 20% in proportion with that twice increases production output as followings y = 2xa. · Possible to calculate & explain each component (fixed cost & variable cost separately in parts & combined ya=a; yx=bx; ya/x=a/x; ybx/x=b) of cost classification affected to cost variances simply, understandable, & mathematically in 4-5 independent variants using applied mathematical approaches (differential calculus, linear algebra, stepwise elimination of each dimension, plane analytical geometry etc), which has extended & enriched scope & component of traditional analytical methods on mixed costs fundamentally. · Application of 4-5 mutually independent versions using applied mathematical approaches (differential calculus, stepwise elimination of each dimension, statistical index, graphic description etc) in order to determining affects as two variance (controllable variance & volume variance), than on basis of that further calculation of four variance (spending variance, idle capacity variance, variable efficiency variance & fixed efficiency variance). Obtaining the same accurate result by using some various mathematical methods in parallel had been targeted to illustrate wide range of tremendous opportunities to perfect, innovate, integrate & widen contents of accountancy. The first we have created & demonstrated affordability to further develop & extend here cited analyzing methods in other topics of cost & management accounting subjects, for example on standard costs variance analysis of factory overhead, direct labor & direct materials, & also on market expenses variance analysis etc, which with we have discovered smart, simple & unique resources to rationally solve many pending solutions. Also we offered very interesting & unique method of variance analysis on factory overhead with comparing levels of budgeting, standard & actual in one calculating table simultaneously. · In addition to traditional methods also we put into university education & practice extraordinary & rather interesting methodology of linear algebra approaches & Gauss method on allocation of factory costs between operational departments & service departments, & also dividing market expenses between operational objects. By the way above mentioned thesis included into contents of 2 volume textbooks in associations with details application examples, which popularly used by tutors & graduates at computer & mathematical faculties of state controlled universities & received good notices from a wide readership. Indeed we had guided by one’s personal intuition, fantastic dream & ever prospect for new ideas different from others & created many innovations on financial analyzing & accountancy. Meanwhile we created more detailed methodology to calculate each showing of preparing income statement by as direct as well as indirect methods via tens of number simple financial equations, which has rendered favorable opportunities to issue commuter application program for this statement, & above mentioned methodology has been published in the brochure titled “Financial statement analysis”, 2007. Unfortunately this book has led all accountant, including CPA (Certified public accountants) to soon-fed & copying mental state, distance from constructiveness consideration & thus who couldn’t cope with prepare income statement by hand method independently. Complying with an accounting standards & advocating conservatism in accountancy raise barriers on continuous development, integrated & diversified innovation of financial statement analysis methodology & contents of accountancy. Increase a number of institutions, which engages grants any licenses like a awards to accountants & financiers, thus earns money & conducts specialized accounting trainings of low quality negatively affects on their professional promotion by skills, insights & reputation etc. The contents of cost & managerial accounting frequently compose of retrospective analysis based empiric distribution series, planning, budgeting & controlling, which renders favorable possibilities to lean on achievements of other science branches. Herein taking opportunities we’ll refer to meteorological forecasting in which observations prepare next year’s weather forecast basing on long-range data, however some elements of this methodology could be used in cost & management behavior analysis & predicting contingency financial recession. Besides to enrich & extend contents of accounting modeling & financial engineering should be approached to physics understandings, for instance sea waves (tsunami wave disperse), trigonometric sinuous shape of which similar to financial recession cycle & it would be feasible on accounting modeling. We consider that accounting standards aren’t perfect in every way, which would be changed out of all recognition in accordance with social-economics evolution, & their looking forward development. You know, standards are principles of conduct informed by notions of honor & decency, which isn’t like as law of nature.
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