Abstract The article presents information on material cost of production. Materials to be manufactured must also be purchased, received, stored and delivered to the production centers; none of these expenditures are "manufacturing" costs, regardless of the fact that some manufacturers include them as part of manufacturing expense or burden. The latter practice is, decidedly, an improper incidence of expense. In this manner, the inventories of raw materials and stores would always remain at delivered cost, as Goods in Process account was charged at that cost. The costs of purchasing, receiving and storage would then be charged to Goods in Process, as an additional material cost. The procedure means that the costs of purchasing, receiving and storage, as these occurred each month, would be charged to an account but labeled as "Unapplied Material Burden." These costs, obviously, would be absorbed into Goods in Process each month on the basis of the value of the materials used.

Abstract So there may be no misunderstanding of my thesis, I have (1) used the term "capital fund" to indicate the total net capital or resources available for the operation of a business; (2) segregated this "capital fund" into its two component funds, namely "working capital fund" and "fixed capital fund"; (3) stated, therefore, that "capital funding" ordinarily occurs only from net profits and the addition of new capital; (4) held that the internal operations of a business frequently involve the conversion of working capital into fixed capital and vice-versa; that these should be called "conversion funding" because they do not affect the "capital fund," but (5) that all of these funding operations be aptly described in the Application of Funds Statement, so that the reader may clearly see how they affect working capital; finally, that the term "non-funding operations" is misleading and incorrect because these are clearly operations between the two component funds which make up the total capital fund of a business; they are funding operations, hence the term "conversion funding" is recommended.

Reviews the book "Financial Reports for Colleges and Universities."

Abstract In a manufacturing business, according to the author's view, there are only two primary and fundamental activities, which should be made to embrace all operating factors and the costs attached to them, the two activities are those of production and distribution. Management and administration in a manufacturing business or in any other business, are not ends in themselves. In manufacturing the administrative function must concern itself either with problems of production or problems of distribution. Financial activities of an internal nature over which management has control must also be viewed as assisting production and distribution in the proportion that these two fundamental divisions utilize the funds of the business. It is generally admitted that modern cost accounting methods lead to an accurate knowledge of product cost, costs which express themselves in the various inventories of manufactured product, and, of course, in the inventories in process. Cost accounting methods also enable one to recognize and give effect to all the variable production factors that enter into the manufacture of a variety of goods.

Abstract The article presents information on the concept of developing a relation between economics and accounting. According to the author, the precipice on the economic side is the concept of consumers' cost, whereas the considerably lower precipice on the accounting side is the present limited concept of inventoriable values. Profit has been defined as that increment of consumers' cost value which is ordinarily in excess of the conversion value created for consumers' needs by the merchant or manufacturer. It has been assumed that only those merchants and manufacturers who do create, through their operations, consumers' cost values will remain in business, because business cannot continue without profit. The theory of marginal utility finds its application and, sooner or later, produce a proper balance between the demands for economic goods and the activities that satisfy the demands. The article summarize that finished inventories, or merchandise for sale, should Include all the values created by the business process, except the profit which is the additional value created by the consumer's act of purchase.

Reviews the book "Cost Accounting," by W.B. Lawrence.

Abstract Accounting data and procedures impinge upon the National Reform Association (N.R.A.) codes and their administration at a number of points. There is for example, the matter of keeping the books and auditing the accounts of Code Authorities. These bodies, whose precise legal status is still a matter of considerable uncertainty, are permitted to collect in a compulsory manner funds from the members of industries under their guidance, and to spend those funds on the basis of budgets approved by the N.R.A. officials in Washington. Accounting data have been extremely useful in the making and amending of codes. The best example of such aid is the ascertainment of the effect of proposed wage and hour provisions on costs. The N.R.A. appears to the author as a challenge to industrial accounting practitioners to bring into play talents which will begin to act because of a recognition that all business transactions are in reality cost matters finding expression not only in the processes of making goods and marketing goods but also in the processes of capital investment and economic readjustments.