Knowledge that Transforms

Abstract The article presents information on teaching business data processing with the aid of a computer. This article describes how the computer fits in to the course and what the students are expected to get out of the course. In the area of understandings, the instructor desires the student to acquire an understanding of how automatic computers go about and are able to do data processing work, what sort of work automatic computers can do, what requirements (including personnel requirements) must be met in order to use an automatic computer in data processing situations, what the usual procedure is for preparing applications for an automatic computer in a business context and what sort of difficulties are involved in using an automatic computer for data processing work. Although the instructor does not ignore technical and scientific applications data processing applications in the business and government environments are stressed in this course. The increasing growth of operations research applications and the use of "business" computers for technical and scientific data processing applications seems to make it inadvisable to draw a sharp distinction.

Abstract In recent years there has been a rapid growth in the application of mathematical programming techniques to the solution of particular types of managerial problems. This increased use of programming techniques should be of interest to accountants for at least two general reasons: there is a definite similarity in the underlying approaches of programming and accounting to a certain type of managerial problems and the application of programming techniques by managements of firms will have a rowing impact on the accountant's function of supplying data used in making decisions concerning the allocation of resources and also the data needed for the control and evaluation of these decisions. The manager of a firm is generally faced with two broad categories of decision-making problems. First he must determine the proper amounts and types of resources which are necessary for the achievement of the organization's objective or objectives. The implementation and the evaluation of linear programming solutions seem to require more work in the development of an analysis of standard cost systems since these systems traditionally have not seemed to be explicitly related to the current planning governing the uses of committed resources.

Reviews the book "Mathematical Analysis for Business Decisions," by James E. Howell and Daniel Teichroew.

Abstract The article presents an analysis of various methods of allocating and distributing expenses in retail enterprises. Allocation and distribution methods are available which can yield, on a departmental basis, a contribution margin and a reasonably accurate controllable profit figures, but departmental net profit can be obtained only if certain indirect expenses continue to be allocated arbitrarily on some such basis as sales. For product lines and individual items, contribution statements can be prepared by allocating certain expenses on an estimated or computed basis and arbitrarily allocating others. Allocation of costs to products and items, where applicable, is more reliable for establishing prices. For cost analysis, cost control and other managerial purposes than the use of departmental averages and departmental figures. The underlying principles of classification are not ephemeral and methods which are being applied in allocating and distributing costs to products and items may be regarded as applications of fundamental classification principles.

Reviews the book "Financial Management of the Marketing Function," by Michael Schiff and Martin Mellman.

Reviews the book "The Professional C.P.A.: Examination," vol. 1, "Text and Problems," vol. 2, "Solutions," by James Don Edwards and John W. Rushwinckel.

Reviews the book "Financial Management--Policies and Practices," edited by Francis J. Corrigan and Howard A. Ward.

Abstract The article presents suggestions by the author for improvements in governmental accounting. The author suggests that the accounting staff should be alert to possible savings in costs and improvements in its accounting and reporting, it should even be ready to eliminate procedures if the resulting information is not worth the time and cost necessary to obtain it. Even the recommendations of authoritative accounting bodies should not be followed blindly, it is always appropriate and wise to seek to know why a procedure should be followed. It is possible that a procedure useful to many governments may not be advantageous to others. Accuracy is also significant. If information being presented to management and the public turns out to be inaccurate or misleading, the accountant is obligated to correct the presentation. Government accountants should constantly look at their work critically and realistically and be every ready to make changes where improved results or efficiency would follow.

Abstract The article presents information on a theory examination of accounts. The theory of accounts part of the May, 1963, Uniform Certified Public Accountants Examination was given on May 17, 1963 from 1:30 to 5:00 P.M. Suggested time allotments were as follows: twenty-five to thirty-five minutes for problem 1, twenty to twenty-five minutes for problem 2, twenty-five to thirty minutes for problem 3, twenty-five to thirty minutes for problem 4, twenty-five to thirty minutes for problem 5, twenty-five to thirty minutes for problem 6, twenty-five to thirty minutes for problem 7. Blacken the appropriate space on the separate answer sheet for each of the following items. Only electrographic pencil should be used for marking this answer sheet and only one answer should be selected which best states a logical conclusion based on the facts stated. Blacken the appropriate space on the separate answer sheet to indicate whether the statements is true or false. The grades on the true-false questions will be determined by deducting the total number of incorrect answers from the total of correct answers; if an answer is omitted it will not affect either total.

Abstract The article presents information on accounting examinations. The following problems were prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the second half of the Certified Public Accountant examination in accounting practice on May 16, 1963. The candidates were required to solve problems 1 through 4 and either 5 or 6. The suggested time allowances were as follows: thirty-five to forty-five minutes for problem 1, thirty-five to forty-five minutes for problem 2, fifty to sixty minutes for problem 3, fifty to sixty minutes for problem 4 and fifty to sixty minutes for problem 5 or 6. Problem 1 presents certain objective questions related to accounting. Problem 2 is concerned with the preparation of the trial balance of a partnership firm. Problem 3 is concerned with the preparation of the shareholders accounts, the journal entries for the books of Groth Corp. recording the merger with Dekline Corp. as a pooling of interest. Problem 4 is concerned with the preparation of the company accounts for the machinery department.