Knowledge that Transforms

Abstract Reviews the book "Management Planning and Control: Mathematical Models," by John Leslie Livingstone.

Abstract Reviews the book "Economic Accounting and Development Planning," by Brian Van Arkadie and Charles R. Frank.

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

Abstract Several writers in the recent accounting literature have recommended that probabilities be utilized in the formulation of a variance investigation decision rule. The objective of probabilistic control is to distinguish between significant and insignificant variances. Only those variances resulting from assignable causes are considered significant and therefore in need of investigation. The opposite applies to chance or random variances. The significance determination is made by considering the probability that a given variance is the result of chance factors, hence, the term probabilistic control. In a recent study the writer explored the feasibility of utilizing probabilities for cost control in a Milwaukee, Wisconsin-based manufacturing firm. The results of the study indicate the pivotal role of the behavioral dimension in the formulation of a variance investigation decision rule. This report will indicate the behavioral problems encountered in connection with the probabilistic model originally utilized, as well as the modified approach used to overcome these problems.

Abstract The article presents information on appointments of college faculties in various universities of the U.S. Myron J. Gordon has joined the faculty of the University of Toronto as Professor of Finance. He is engaged in a study of the cost of capital for public utilities sponsored by the Federal Communications Commission. John C. Corless joined the faculty of The University of Connecticut as an Assistant Professor. Samuel Frumer was appointed by Governor E. Whitcomb to the Indiana State Board of Public Accountancy for the three-year term starting July 1,1970. John Pick is a member of the Committee on Relations with Educational Institutions of the New York State Society of Certified Public Accountants. He was a representative of Long Island University at a Computer Seminar in Knox College, Galesburg, Illinois. Harold E. Arnett has been promoted to Professor and appointed Chairman to succeed Walter Kell whose term expired June 30, 1970. Walter Kell was appointed Consulting Editor of the Accountants' Handbook.

Abstract Reviews the book "Contemporary Auditing," edited by Wayne S. Boutell.

Abstract Reviews the book "Management by Information System," by Joel E. Ross.

Abstract Reviews the book "The First Henry Ford: A Study in Personality and Business Leadership," by Anne Jardim.

Abstract Presents news briefs related to accounting education as of October 1971. Retirement of E. Bryan Smyth from the University of New South Wales; List of accounting professors who joined the University of Florida; Appointment of Ralph J. Winston as a University Professor of Accounting at the Governors State University in Illinois.

Abstract Reviews the book "Contemporary Cost Accounting and Control," edited by George J. Benston.