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THE BASIC THEORY OF STANDARD COSTS.

Walter B. McFarland
The Accounting Review 1939 14(2), 151-158
The principal characteristic which distinguishes standard cost systems of ac- counting from older cost systems is the use of standard costs in addition to actual costs. The introduction of standard costs is but another step in the process of establishing complete control over all factors which are subject to the influence of management. A current standard is one which is intended to be representative of what cost actually should be under the prevailing circumstances. It is generally regarded as a real cost to be carried through the books of account and into the financial statements. A basic standard is, on the other hand, intended to serve only as a yardstick with which both expected and actual performance can be compared. When basic standards are applied, it is necessary to use current standards also, but current standards can be used without basic standards. The reason for this is that a basic standard by itself does not necessarily represent what performance ought to be in a given period but serves only as a base from which to measure changes. In order to realize the principal benefits from standards, it is essential that the standards be reasonably attainable goals.

HELP WANTED--ACCOUNTANTS.

Roger F. Knittel
The Accounting Review 1939 14(2), 158-162
This article highlights the problems concerning accounting education in U.S. colleges. There is a feeling that college accounting courses are too ambiguous, too much of a confusion, and too theoretical. Too many college graduates feel an accounting position is theirs by right of their degree in accounting without requiring them to do any detail work. Too many people without any natural aptitude for accounting are encouraged in colleges. The first criticism, centering around class-room "theory," has been broadcast ever since the advent of the school of business administration. The second criticism is a reflection upon the type of instruction found in most schools in creating a mental attitude in the student which is not particularly beneficial. It has been found that men receive highest compensation from public accountants and metal manufacturers and the lowest salaries are paid to them by transportation companies and motion-picture exchanges. Municipalities pay the best salaries to women accountants, with public accountants second; while hospitals are the least remunerative of all.

CONVENTION REPORT.

The Accounting Review 1939 14(1), 76-82
The article presents information on the proceedings of the 23rd annual convention of the American Accounting Association, held at Detroit Leland Hotel, Detroit, Michigan, between December 28 and 30, 1938. The chairman introduced the representative of the American Institute of Accountants, Thomas H. Evans. The first order of the regular business was the reports of officers. The president addressed that a considerably larger Life Membership Fund would enable them to publish a number of worthwhile studies which would add to the prestige of the association. He adds that the cooperation of all members and especially of the heads of accounting departments and others in keeping the directors informed of projects which are in the offing and in putting the committee in touch with promising men who might undertake studies on subjects needing research works. He admits that their educational committee has not been assigned any particular projects this year, but several studies of collegiate training in business and accounting are being made by other organizations, and it is likely that they shall be called upon in the near future to take part in one or more of these.