Knowledge that Transforms

Reviews the book "Corporation Finance," 7th ed., by Edward Sherwood Mead.

Reviews the book "Neue Deutsche Wirtschaftsführung," by H. Nicklisch.

Reviews the books "The Rationalization of Movement in German Industry," by Robert A. Brady and "Trade Associations and Industrial Control," by Simon N. Whitney.

Reviews the book "Chain Store Expenses and Profits, an Interim Report for 1932," by Malcolm P. McNair.

Abstract Accounting is usually regarded as an adjunct of commerce or industry which has at the most a tenuous relationship to the structure and theory of science and slight discernible similarity to of political organization. It was no accident that the double entry system of accounts was introduced in Italy. Accounting centers around two classes of records, the balance sheet and the profit-and-loss statement. Taken together they exemplify the mechanical theory of physics as well as the physiological or organic theory which is associated with evolutionary processes in which time is cardinal. An initial and fundamental point of contact and the basis for both the physical sciences and accounting is present, to begin with, in the number system which is common to both. The number one is primary in that every other number is divisible by it, thus presuming the homogeneity and divisibility of those things to which the numbers are assigned. Their homogeneous and divisible character is further amplified by the operations of addition and subtraction.

Abstract The National Committee on Municipal Accounting is a joint committee of representatives of the leading national associations of professional accountants, public officials and citizens groups. The representative of each association in the joint committee is the chairman of an advisory committee set up in each association. The general purpose of the committee is to formulate principles of municipal accounting, to develop standard classifications and terminology for municipal reports, to outline the principles and procedure relating to municipal audits and to promote the recognition and use of these standards. A preliminary outline of the general principles of municipal accounting has been prepared by the committee as a tentative basis for the development of classifications and procedure. According to accounts should be centralized under the direction of one officer, who should be made responsible for keeping or supervising the keeping of all financial records and preparing all financial reports. Although this is not strictly an accounting principle, it is nevertheless an essential feature of organization necessary to secure good accounting. At present many officers and departments in a municipality keep accounts and issue reports.

Reviews the book "Recovery and Common Sense," by O.M.W. Sprague.

Abstract This article focuses on the cost of distribution from the manufacturer's point of view. Distribution costs involve the total cost of carrying goods from producer to consumer, the costs of operating retail stores, the costs of operating wholesale houses, transportation costs and the manufacturer's selling costs. The author's remarks today are concerned chiefly with the cost of distribution from the standpoint of the manufacturer. When the individual manufacturer sets out to find ways and means of reducing his distribution expense, one of the first questions that canes to his mind is how do his costs compare with those of other manufactures in his industry selling the same or a similar type of product. And it was in an attempt to aid in answering this question that the Association of National Advertisers undertook a few months ago to assemble distribution cost figures from representative manufacturers in leading industries of the country. It was hoped that we could provide a yardstick by which each individual manufacturer could determine whether or not his own costs of distribution were in line with those his competitors.

Abstract Keeping and supervising the accounts of a municipality and assisting the administrative officers through the medium of timely and proper information requires a higher degree of intelligence than does such a position with a mercantile concern handling a similar volume of business. In addition to preparing budgets, keeping the various funds properly accounted for and preparing statements for administrative guidance, administrators must know the numerous legal requirements affecting municipal affairs. It is on this recommendation that all friends and advocates of honest, economical government should focus attention, recognizing that at the present time approximately 20% of the total income of the United States is expended by local governments such as townships, school districts, cities, park districts, sanitary districts, and counties. It is recognized of course that accounting systems themselves cannot make people honest, but it is maintained that adequate systems will enable honest and well meaning public officials to administer the affairs much more successfully.

Reviews the book "Wholesale Distribution of Breakfast Cereals in Southern Michigan," by Edgar H. Gault and Raymond F. Smith.