Abstract Reviews the book "Managerial Cost Accounting," 5th ed., by Gordon Shillinglaw.

Abstract Reviews the book "A Mathematical Interpretation of the Balance Sheet," by Giuseppe Palomba.

Recently in the accounting literature two different directions have been taken toward research into the theory of accounting and information systems. One approach seeks to modify conventional accounting to take advantage of increasing computer capabilities, while the second approach advocates including more diversified types of information in accounting reports. Although different, both attempts reflect the accountant's desire to serve users of accounting data better and in a more efficient manner. Toward this end the objective of this paper has been to develop a new approach to accounting and information systems which both generalizes and unifies these two directions of research. The approach presents a framework within which one can work on both the theoretical issues concerned with extending accounting to provide more types of information and the practical issues surrounding the efficient implementation of an accounting system on modern computer equipment. In order to accomplish our objective, a very general definition of accounting was assumed, one which concentrated on the concepts of "communication" and "economic event . The accounting system could then be constructed around a "data base" which consists of descriptions of economic events, ( K + 1)-tuples of the form (c, x 1 , x 2 , &haelip;x k ) where c denotes a binary event code and x 1 , x 2 , &haelip;x k are values of the characteristic used to describe the event. In this multidimensional system, we are not restricted to a single valuation scheme and efficiencies are gained in storage by using a description space of variable dimension. Also because the data base in any company is likely to become quite complex, a generalized concept of an account was introduced. The method described would permit economic events to be classified, sorted, and sequenced in a variety of ways to handle flexible needs of the users.

Abstract The article presents information on programming, profit rates and pricing decisions. Many, perhaps most, linear programming models whose objective is profit maximization assume a short run situation under conditions of perfect competition. The management techniques they develop serve as prescriptive guides to the solution of current operating problems and are devoid of any pricing considerations. It is true that fixed costs are usually lurking behind the set of constraints subject to which the 1.p. model is to be solved. The distinction between the 1.p. model under conditions of perfect competition or of monopoly has been pointed out. A full-cost pricing 1.p. model for price fixers has been explained. First, the 1.p. model for two activities and a constant markup was illustrated by Problem 1 and the implications for pricing considered. Next, the result of bid restrictions on activity levels was found to be that the full-cost model becomes an integer programming. Problem 2 was used to introduce the dual problem together with parametric analysis and to discuss planning and capital budgeting implications of the model. Finally, the difficulties arising where differential rates of return exist between activities were demonstrated by Problem 4.