Knowledge that Transforms

Reviews the book "Problems in Auditing," by Arthur W. Hanson.

This article compares actuarial formula with sinking fund type formula for valuation. The objections to all sinking fund type formula are generally over-ridden with too great ease. This fault involves a fundamental question of financial policy, which it would seem is sufficient to cause the rejection of all sinking fund type methods of valuation and the use of the so-called compound interest actuarial method for all commercial situations save those in which some contractual or statutory requirement actually calls for a bona fide sinking fund. Under the compound interest actuarial premises the capitalist receives at the end of each year simple interest upon the amount of capital he has outstanding at the beginning of each year. The distinguishing feature of all sinking fund valuation methods is that no capital of the original commitment may be returned to the investor during period of investment. A sinking fund is created, or assumed for the purpose of valuation, in which any capital return from receipts is placed.

Reviews the book "Bank Sales Management," by Mahlon D. Miller

This article focuses on the budget program instituted by the production department. The chief problem will be to produce the goods in time for their sale. In order that this may be done, or that production and sales demand may be coordinated, an inventory record of the finished goods must be kept. These records will include a control over the minimum and maximum amounts of inventory which should be on hand. The production department may consider it best to follow the lead of the sales department by manufacturing the product for the seasonal demand and shutting down until production again becomes necessary. This is the practice in many industries. In the first place, the practice of working at a high pitch for a few months of the year is not the best way of using plant and machinery. Second, it is often more economical to buy raw materials when the season is over and the demand less. Third, it is well known that men do better work when operations are regular than when they are forced to turn out rush orders.

Reviews the book "The Standard Book on Cost Finding for Printers," edited by Elmer J. Koch.

Reviews the book "Credit Bureau Management," by J. R. Truesdale.

Reviews the book "Die Marktverbande," by I. Teil and W. Vershofen.

Reviews the book "Putnam's Economic Atlas," edited by George Philip and T. Swinborne Sheldrake.

Reviews the book "American Investment Trusts," by John Francis Fowler.

Reviews the book "Corporation Finance," 6th ed., vol. 1, by Edward Sherwood Mead.