As has been pointed out by other authors, business accounting systems are similar in nature to social or macro-accounting systems. In this case, business accounting data were put into a Leontief input-output framework and changes in the accounts predicted by the system. It was found that the estimated changes were very close to actual changes for two accounts and somewhat variable for the other two accounts. The input-output system provides a method whereby management can predict changes in the level of the balance sheet accounts which arise from some level of operations, analyze the dollar flows into and out of accounts, or investigate the impact on the accounting system and level of accounts brought about by changes in operating levels and conditions. The framework, common to all firms, also provides a uniform procedure for aggregating firm data and thus is a method of consistently establishing an inter-firm analysis for an industry or an inter-industry analysis for the economy. In order to fully assess the value of the system for financial analysis and planning, a more detailed and expanded system is needed. This would require analysis of the individual accounts and their relationship to each other under normal operating conditions. Changes in operating or accounting procedure as well as technological changes would influence the applicability of the system and the specification of the coefficients.

Business is getting an increasing insight into its cost mistakes. It is analyzing their causes and taking preventive action. One means of taking preventive action is through financial analysis. Financial analysis is a service performed by the accountant for management. Every day a business enterprise is faced with alternatives. Choosing between these alternatives is the decision-making process that means the life of the business. Financial analysis cannot be done by the amateur. Every business man is a selfstyled analyst and, in large corporations, this function is assumed by nearly every department head and division manager, by heads of sales, scientific research and production. It is the job of the accountant, as financial analyst, to uncloak even the most obsecure aspects of proposals calling for capital expenditure, to remove any camouflage that may exist and to reexpress them in common language and format, using similar definitions and measurements and adopting as a common denominator a comparable formula for investment, return and profit.

Reviews the book "A Proper Monetary and Banking System for the United States," by James Washington Bell and Walter Earl Spahr.

Reviews the book "Internal Auditing," 2nd ed., by Walter W. Bigg and J.O. Davies.

The article presents information on material cost of production. Materials to be manufactured must also be purchased, received, stored and delivered to the production centers; none of these expenditures are "manufacturing" costs, regardless of the fact that some manufacturers include them as part of manufacturing expense or burden. The latter practice is, decidedly, an improper incidence of expense. In this manner, the inventories of raw materials and stores would always remain at delivered cost, as Goods in Process account was charged at that cost. The costs of purchasing, receiving and storage would then be charged to Goods in Process, as an additional material cost. The procedure means that the costs of purchasing, receiving and storage, as these occurred each month, would be charged to an account but labeled as "Unapplied Material Burden." These costs, obviously, would be absorbed into Goods in Process each month on the basis of the value of the materials used.

Reviews the book "Accounting II," by Leo A. Schmidt.

Reviews the book "Principles of Accounting-- Introductory," by H.A. Finney and Herbert E. Miller.

Reviews the book "Accounting Practice and Procedure," by Louis H. Rappaport.

The article discusses the differences between the profession of accounting and the profession of accountancy. It lists the definitions of the terms which brings one to the conclusion that there is no profession of accountancy but there is a profession of accounting, namely public accounting. The article suggests that a profession should exist if practitioners are to receive full professional recognition and status. It defines the profession of accounting, a controller's obligation to judge, measure and disclose which extends through the internal and external fibre of the organization. It discusses the question of whether a controller can obtain true professional status and enumerates the four specific requisites against which the professional status of a controller can be measured, which are, special training for a degree distinct from the usual degrees in Arts and Science, principally mental rather than manual or artistic skill, recognizing the duty of public service and the compliance to a code of ethics for controllership.

Reviews the book "Report Writing for Accountants," by Jennie N. Palen.