Reviews the book "Basic Auditing Principles," 3rd ed., by Arthur W. Holmes.

Reviews the book "Contributions of Four Accounting Pioneers-Kohler, Littleton, May, Paton-Digests of Periodical Writings," compiled by James Don Edwards and Roland F. Salmonson.

A course of the seminar type in accounting theory is needed for graduate students in accounting because (1) sound theory is the basis for good practice, and (2) there is a lack of emphasis on theory in most of our curricula. Students in related fields need a means of achieving an understanding of the basic philosophy of accounting without taking numerous courses stressing techniques. The course should be outlined from the developmental or history of accounting theory point of view. It should cover the following major topics: (1) early history: (2) economics and accounting; (3) fundamental accounting concepts; (4) statements of principles; (5) accounting and the price level; (6) accounting for individual balance sheet items and theft relationship to income determination; (7) financial statement content and structure. Certain topics not otherwise covered could be presented in the form of oral reports if time permits. Materials for reading assignments will be drawn mainly from the volumes of Tim: ACCOUNTING REVIEW and The Journal of Accountancy, plus certain other periodicals, monographs, books, and pamphlets. The course should be conducted as a seminar, employing the discussion method and without extensive written reports. Examinations may need to be given only where the size of the seminar makes student evaluation by other means difficult.

Cost analysis in electric-utility accounting has been somewhat neglected in the U.S. The common attitude has been that since there is only one product in most cases, the determination of cost per kilowatt-hour at various points in the generative and distributive process is as far as cost analysis need go. Many of the larger private and municipal utilities, however, have given serious attention to the possibilities of more extensive cost analysis. The estimates of the detail of expenses at various levels of output need to be studied to show which items were fixed and semi-fixed, and which could be more properly classed as variable. Since in an electric utility the productive capacity required is that necessary to take care of the peak load (with a reasonable margin of safety), it is a simple matter to reason that those customers who demand service at the time of the peak should bear the capacity costs in proportion to their respective demands at that time. They are the customers who are responsible for the peak and the advocates of the method hold that such customers should bear the costs of providing and maintaining the necessary capacity.

Reviews the book "Records for the Control of Growing Manufacturing Enterprises," Paul F. Lawler.