Reviews the book "Business Cycles," by Earl C. Hald.

Abstract Fixed asset accounting is of fundamental importance in public utilities and railroads because of the relationship between the valuation of property and the rates in those industries. While there is no precise uniformity in the regulations of the various jurisdictions, the general rule is to provide definitions of property units suitable for the particular industry. These units are fairly carefully defined in the uniform systems of accounts and accountants can refer to the manuals at any time that a fixed asset work order requires a distribution. In as much as differences of opinion regarding the interpretation of some transactions are sometimes possible, it would be an exaggeration to claim that the procedures result in complete accuracy in an abstract sense. However, there is no doubt that written definitions of fixed asset units help to promote uniformity. As a general rule, definitions of public utility and railroad units of property were originally determined by engineers. Once they had been satisfactorily defined, however, accountants experienced no particular difficulty in using them for accounting purposes.

Abstract The article presents information on empirical cost study and economical theory. In recent years there has been a growing interest in measuring what is known as the cost function. While several economists have directed their attention to the actual calculations, a greater number are likely to become interested in some of the many problems which have been disclosed. The larger problems relate to certain significant implications of the conclusions arrived at in these studies. An analysis of the issues involved will perhaps contribute to their clarification. The empirical investigation of cost functions involves the measurement of the relationship between cost and output. It is thought that such studies may be significant because "cost behavior has a crucial role in determining the most profitable adjustment of the individual enterprise to its economic environment." In considering these efforts to calculate the cost function, it is necessary to recall some essential elements of economic theory. In economic theory a distinction is made between the short run and the long run.

Abstract In this article the author presents accounting profits as an institution. According to the author the numerical estimates of profit become a business necessity with the expansion of the market and a corresponding increase in uncertainty. Such estimates are provided by accounting which attempts a quantitative clarification of the results of the utilization of productive forces. From the relatively simple record-keeping of an earlier period there have emerged the now highly complex, specialized functions of purchasing and marketing. Increasing problems also give rise to the expansion of interests concerned with personnel, managerial techniques, publicity, and other features. With the passage of time, increasing accounting requirements and techniques have been accompanied by the development of a body of highly involved doctrine. Public control is a further factor contributing to this result. Meanwhile, there is an ever-growing attempt on the part of accountants to arrive at a body of principles or standards which can be generally accented. In these tendencies the place of accounting profits as an institution manifests itself.

Reviews the book "What Happens During Business Cycles: A Progress Report," by Wesley C. Mitchell.

In this article the authors comment on an article related to placement of taxes in income statement, which was published in an earlier issue of the journal "The Accounting Review," as of January 1946. There are several kinds of revenue deductions which are nonetheless broadly in the same pew when it comes to the over-all calculation of net corporate income. First of the three classes of deductions is cost, in the sense of goods and services definitely consumed in the process of production. Second is losses, in the sense of outlays of one sort or another which have lost all significance so far as future operations are concerned, even though not having made any recognizable contribution in the past operations and last is taxes, which is payments to governmental units as computed on various bases and representing services only in the vague general sense in which government makes a contribution to the carrying on of the particular business enterprise. All of these classes of deductions are in the same boat when it comes to the question of determining profits.