Did science or politics drive the presentation of depreciation at the Bell System?

What is it about?

In making the case before regulators for depreciation accounting, Bell System management presented a new type of depreciation accounting: group depreciation. Regulators were overwhelmed by a complex presentation, that served to impress the regulators that Bell engineers were experts in their field

Featured Image

Why is it important?

When there are debates about accounting, scientific accuracy is just one aspect that goes into determing which methodology is best. How the material is presented by the experts to the regulators and wider public is just as important. As this case shows, by controlling the presentation process, management can increase the likelihood of gaining regulatory approval of their preferred methodology. It also helps if the science supports the method!