Abstract Management services have become an increasingly important part of the professional activities of the certified public accountants (CPA). The propriety of management services in public practice serve to reinforce those of the profession's leadership. Not only are management services in harmony with auditing, but there is a definite interrelationship between the two functions. Understandably, the development of standards and measurement of competence has lagged behind the growth of management services in public practice. At the present time the profession has left the matter of competence to the individual judgment of the CPA. But reliance on this tenuous standard is dangerous for a profession which is held in such high esteem by the public. To wear the mantle of CPA, and to measure competence successful passage of a comprehensive examination is required. It is recommended, therefore, that the scope of the examination be expanded to include either questions or problems or both relating to management services. The addition to the present examination of questions in the standard area of management services will aid materially in maintaining the prestige of the profession.

Reviews the book "Elementary Accounting," by Perry Mason, George Stenberg and William Niven.

Abstract The article critically examines the aspects of direct costing. It discusses the development of the principle of burden application as the antecedent of direct costing. The article discusses the thinking of the absorption costing school as opposed to the ideas of direct costing which led to refinement involving the rate of activity in computing burden taxes, measurement of burden variances and use of separate burden rates for allocating fixed and variable portions of overhead. In contrast, direct costing school proposes an almost complete overthrow of the burden application principle. The article then describes the differences between direct costing and marginal costing, scrutinizing the techniques involved in obtaining both costs. The article then illustrates the shortcomings, discussing in length the instability of direct costing and the necessity of foresight into the future. The possibilities of direct costing in multi-product plant operations and its contribution to product pricing has been discussed in length. Restriction on cost and product flexibility, a result of too much reliance on differential cost analysis for price-output decisions and the factors involved in making long run price-output decisions by a firm operating within an oligopolistic market are detailed.

Reviews the book "Accounting, Elementary," by Arthur D. Maxwell and John H. McMichael.

Reviews two books. "An Outline of Elementary Accounting," 3rd ed., by Royal D. M. Bauer and Paul H. Darby; "Accounting Problems With Answers," by Joseph C. Schabacker and Paul K. Schroeder

Reviews the book "Auditing Principles and Procedure," by Arthur W. Holmes.

Abstract This article presents information the teaching methods of accounting. Beyond the first few weeks of the elementary course, too little emphasis is placed on the fundamental accounting equation. As a result the student threads his way through the first year of accounting at best understanding certain relationships in vacuo but probably in most cases accepting them on faith. He then proceeds to memorize these relationships and hopes that the examination situation will be sufficiently similar to the one he learned by rote so that he can cope with it. Perhaps the ideal solution to this difficulty is one which places greater stress on the equation in the first course in accounting, but this probably would require a fundamental revision of course structure with the concomitant sacrifice of other worth-while materials. One result that follows from this lack of stress on the equation is the necessity to spend the first part of the second course in accounting on a general review of the basic accounting process.

Abstract Twenty nine universities in the U.S. offer doctoral programs that will "fit the needs of a student whose primary interest is to prepare for a career of either the teaching of accounting or research in accounting." A survey of these programs was undertaken by the Task Committee on Standards of Graduate Instruction, formed early in 1957 to succeed the Task Committee on Standards of Accounting Instruction. The article summarizes the information the committee gathered during its first year of operation. At three universities the students whose primary interest is accounting pursue their doctoral studies under the jurisdiction of the economics department. In two cases the program is jointly conducted in economics and business administration. In all other instances, the Department or School (College, Division) of Business Administration offers and administers the degree program, subject, in most instances, to general, university-wide requirements. The Committee was interested in institutional practices with respect to any student who wished to major in accounting in his doctoral program without having had the minimum course requirements for a master's degree in accounting.

Abstract During the last two decades, the demand for the services of the Certified Public Accountant (CPA) has expanded at an astonishing rate. Such favorable recognition, however, imposes greater responsibility upon the profession to maintain high standards for admission to its ranks. One of the essential characteristics of a profession is a body of special knowledge. Every candidate for admission to the profession should be required to prove his mastery of the common core of knowledge that all CPAs should possess. This article presents the report of the Committee on the CPA examination. The report presented the results of the committee's study and evaluation of the content of the CPA examination in relation to its basic objective. The report was presented in three major parts--A statement of the knowledge and abilities, which a CPA should possess together with an analysis of what knowledge the CPA examination should test, an evaluation of specific subject matter of the CPA examination, and conclusions. The points discussed in the report include--General knowledge: what the examination should not test, commercial law should be deleted, need for a description of the Common body of knowledge, special knowledge: what the Examination should test, scope of management services, taxes, accounting theory, accounting practice, and auditing. The report concludes that the proper objective of the CPA examination is to test the common body of special knowledge that all CPAs should possess.