The article identifies the conditions for classifying accounting as a measurement discipline. A typical definition of measurement is "the assignment of numerals to objects or events according to rules." Defining measurement in this manner overcomes the objections mentioned above and insures that measures obtained via the various scales will be informative and consistent. A more satisfactory definition of measurement is the assignment of numerals to represent elements or a property of elements in a specified system on the basis of isomorphism or homomorphism existing between one or more empirical relational systems and one or more numerical relational systems. For example, if purchasing power, which is defined as the ability of an object to command other objects and services in exchanges, is shown to satisfy the conditions above, more precise definitions of accounting concepts could be formulated. Similarly, in choosing a depreciation method for a particular asset, the accountants would choose the method which is believed to parallel more closely the decline in the purchasing power of the asset. If accountants are not willing to choose an economic property for accounting measurement, which approximates extensiveness, and to assume that the property is extensive, they must abandon their attempts to improve and to explain accounting via measurement theory.

The various aspects of cost provide the conceptual core of management accounting. Incremental cost and opportunity cost are particularly important concepts, since they provide the foundations for the accountant's contribution to decision-making. The article sets out to test the validity of the two concepts. It says that there seem to be some confusion as to the precise meaning of the terms incremental and opportunity cost. The confusion exists in the literature of management accounting, managerial economics, and pure economics. The article suggests that a definition, using systems terminology, can help to clarify the meaning of the two terms. It defines incremental cost as the sum of the opportunity costs of the inputs to a system, each input being used independently of other inputs. Opportunity cost is defined as the revenue sacrificed by not implementing the next best alternative output from the resources making up a system. It is seen that incremental cost provides a floor to opportunity cost. The task of measuring opportunity cost is synonymous with the task of maximizing the profit from the use of the resources under a firm's control. The accountant cannot be expected to tackle this problem alone.

In a profession as dynamic as auditing has become, it is certainly not too soon to begin speculating on the challenges EDP will present to the auditor of the 1970's. During the 1960's have witnessed rapid technological advances in EDP, and there appears to be little doubt that the pace will accelerate. Accordingly, the purpose of this article is to indicate where the auditor currently stands in relation to EDP, and the extent to which this relationship is likely to change in the 1970's. Auditing around the computer remains the rule rather than the exception, and auditing through the computer is seldom a requirement that cannot be avoided. In fact, the profession has the situation so well in hand, one cannot help wondering how we achieved this surprising result in view of the expectations to the contrary. Even assuming the 1970's produce a rapid implementation of sophisticated information systems, there are internal and external factors that will help the auditor meet the challenge. Externally, other responsible groups have much the same problems as auditors have. For instance, no matter how the systems of the future as designed, management will still have to maintain adequate control over them. Designers of systems may convert the information and audit trails exclusively to electronic form, but regardless of theft form, the trails must remain for control purposes.

This article particularly deals with matters related to teaching of accounting. A growing proportion of the "art of teaching" is yielding to the "science of teaching." One reason for the change in emphasis is the growing use of the systems approach for studying and proposing solutions to a wide range of organizational and social problems, a distinctive feature of which is to search for and relate interdisciplinary theories and techniques. The educational process lends itself to systems analysis. Learning theory now encompasses elements of many disciplines and coordinates these to produce improved learning experience. So far the curriculum designing is concerned, the first step is the identification of objective. Traditionally these objectives have been expressed in descriptive or uncooperative terms. Objectives of this type are vague and ambiguous, allowing for many possible interpretations of ends and means. They have little value when they are used as the only guideposts to learning.

Acquisitions by corporations of their own outstanding shares are one of those transactions which seem to be peculiarly subject to misunderstanding. From time to time efforts have been made to shed light on the nature of such transactions, but to date the gloom of confused thinking and questionable policy has not been fully dispelled in this special segment of corporate finance. About a half-century ago the author of this article published an article which he naively assumed would settle the basic issue, once and for all, and in other writings since this piece appeared he has tried his hand at the chore of promoting straight thinking on the subject of "treasury" shares. These comments represent a sort of postscript to the earlier attempts, and they are drafted with the thought that a continuing campaign is necessary to keep the leaven of logic alive wherever there is persistent susceptibility to error. The first step in grappling with the subject of "treasury" shares is to recognize that such shares have substantially the same status as stock that has never been issued. This essential point, unfortunately, has usually been overlooked in the textbooks and other writings on accounting and finance.

Reviews the book "Divisional Performance: Measurement and Control," by David Solomons.

This article focuses on designing consolidated position statements in a tabular format to make the study and teaching of accounting courses easier. By holding some factors constant and varying certain selected conditions-investment cost, percentage of ownership, and time it becomes possible to effectively illustrate some of the primary relationships between the selected conditions and the three special items of goodwill, minority interest, and retained earnings as they are presented in consolidated statements of financial position. The exercise provides twenty-four different sets of conditions. The necessary data can easily be mimeographed on a single page for classroom use in the following manner. The completed table can also be used for the purpose of reviewing the patterns of changes which take place in the position statement amounts as a result of changes in the selected conditions. This tabular approach helps the student recognize some of the primary relationships between investment cost, percentage of ownership, and time, and consolidated goodwill, minority interest, and consolidated retained earnings.

The accounting profession and accounting education have increasingly become more specialized, and necessarily so. The field is too large and the material too complex for accountants to be true experts in every area. The operations research area is perhaps analogous to the area of federal income taxes. Each accountant must have a certain minimum knowledge about taxes, but people need not know all of intricacies of tax law. The first big problem to be overcome is fear of tackling the area at all. As indicated in the allegory, the two indispensable aids in accomplishing this end are an understanding of college algebra, and an understanding of elementary statistics. To become a real expert in linear programming would require a commitment of time and effort which is probably not justified, but to become thoroughly conversant in it and comfortable about it, is not such a big task, and will provide with a solid springboard for tackling the rest of the quantitative field. It seems that this approach is better than starting out with a survey of the entire operations research/quantitative methods field on a general level.

The CPA's attest function has customarily involved primarily the rendering of opinions on financial statement presentations in reports to investors and creditors. Its principal application has been the expression of opinions on the fairness of the conventional financial statements included in corporate annual reports. The auditor's ability to verify information presented outside the financial statements would appear to be the primary determinant of whether his attest function could be extended to include that information. Verification is essentially a matter of obtaining sufficient evidence to provide a rational basis for judging the reliability of assertions made by others. The ability to obtain sufficient evidence to afford a reasonable basis for an opinion regarding any information, financial statement or otherwise, will vary, of course, depending upon circumstances in a particular examination and the professional competence and judgment of the auditor performing the examination. Some of the non-financial statement information is frequently presented for a period of two years or more. CPAs already render opinions in many cases on data covering two years or more. Before a CPA can render an opinion on a company's basic financial statements, he must determine whether those statements present fairly the company's financial position and results of operations.

The article focuses on the use of closed circuit television (CCTV) for instruction at university level. Every institution has its own set of faculty qualification standards, but regardless of the level at which these standards are established, it is difficult to find and retain sufficient personnel to meet the increase in student enrollment. The use of CCTV is one way in which a senior staff member can reach all of the students without losing the attention of a high percentage of them in a mass lecture. Any discussion of the future reuse of television tapes to reduce instructional costs raises the question of what happens to the individual who made the tapes. The use of television tapes in absentia, or their sale to, or use by, another institution is subject to considerable study and discussion. The reuse of taped material developed by an instructor no longer associated with the University is dependent upon the approval of the recording instructor. While it is admitted that any television presentation can take more preparatory time than a similar live class meeting, such preparation time is not the major obligation of the offering or directing professor.