This article focuses on a study which analyzed the role of programmed instruction in accounting instruction. Higher education is the poorer for not requiring basic teacher-training and/or educational psychology as prerequisites for academic appointments. The assumption that the post-baccalaureate process per se produces "good" teachers may not be a valid one. For many accounting instructors who wish to experiment with these new methods for communicating accounting verbal and manual skills it means starting at the elementary level of learning theory. Knowledge of the over-all learning process is essential not only as an aid to introducing and testing programs, but also as a means for selecting from among competing programs the program that is best suited pedagogically to the specific learning experience. Educational psychology contains a wealth of concepts and theories relating to the learning process, e.g., learning efficiency, task-orientation, identification, concept recognition, concept association and transfer, motivational or readiness factors.

The article focuses on the controversy regarding the nature of education and the means by which a state of being educated is achieved. The education of the individual consists of the impact on his mind of the entire stream of phenomena encountered during his lifetime. Formal education is only one sector of the whole process, and presumably not the most important element in many cases. A school should be regarded as a specialized undertaking, not as the embodiment of all human experience and activity, in a miniature. A school should concentrate on the training and learning that can be accomplished more speedily and effectively in an institutional setting than through general day-by-day experience. Moreover, the school should not only restrict its efforts to fields which lend themselves to attack in classroom and laboratory but should give primary attention to subjects that are acknowledged to be especially significant and worthwhile. In making a start on the task of sets ting standards for selecting subjects to be taught it may be helpful to take note of some broad principles.

Reviews the book "Accounting Principles and Control," by Lawrence L. Vance and Russell Taussig.

The article focuses on intermediate accounting. A case study is presented wherein the variations in the value of the smelter is used to reinforce the logic of the accountant's concepts of verifiable objective evidence and cost as a measure of value. In 1953, the U.S. government entered into a long-term contract with Nickel Smelting Co. for the development of a substantial nickel deposit owned by it, but heretofore unused. Under the terms of the contract the company was to build the smelter with capital funds advanced by the government. The smelter was built during 1953-54, and began producing in quantity in 1935. Initial construction costs were $21,000,000, and an additional $1,800,000 was spent during 1955-56 for replacements and improvements, all of which were capitalized. After making all the calculations it was concluded that at least eight different values, ranging from zero to $15 million were identified. These differing values indicated why many accountants consistently adhere to recorded cost, with all its weaknesses, and to verifiable, objective evidence.

The article focuses on the evaluation of student performances. Some schools make student evaluations known to the student body, faculty, or university administration. This usually takes the form of a booklet and may be published for everyone, or only for faculty use. Its purpose is to point out the bad teachers. Faculty, for obvious reasons, have mixed sentiments about such a publication. But, in general it is considered to upgrade the quality level of the faculty by focusing attention upon those doing the worst job of instruction. A complicating factor is that once the student completes the course, it is hard to recall in any detail his performance other than the final course grade. Except for the few outstanding students, it is hard to give opinions about performance and qualities when inquiries are made. One means of having a permanent record of student evaluation is by using a rating sheet such as that developed at the University of Southern California. The questionnaire covers three basic areas, the student's relationship to class activities, personal qualities, and suitability for employment in a certified public accountants firm.

The article focuses on the issue of revolutionizing accounting theory, which has been a left out proposal in the past few years. Revolutionaries have devoted a high proportion of their total effort to the related problems of profit determination and asset valuation. C.T. Horngren, a scholar, suggested a compromise plan which attempts to accommodate clashing interpretations of the significance of realization only. Horngren's article attempts, through a critical examination of some important proposals of recent years, to discover the root cause of disagreement over the optimum concept of value and to suggest a compromise path along which the revolution in valuation and income theory may progress. The article concludes that a compromise solution to this conflict of widely divergent views in this area would be to adopt a valuation rule that requires each asset to be valued according to the basis offering "sufficiently definite verifiable evidence" and yielding what is believed to be the closest approximation to the present value of the asset's future cash flows.

The accounting requirements of Medicare are more rigorous than appears obvious on the surface. Many of the providers, particularly in the nursing home sector, lack adequate accounting systems in the present circumstances--without the added requirements of Medicare. Many of these institutions will find it necessary to convert from their present cash method of accounting to an accrual basis that includes a costing, standard costing, and periodic reporting capability. The resources of the individual institutions, monetarily and technically, are insufficient to cope with the changes that are needed. The intermediaries recognized in Public Law 89-97 will be able to provide some of the assistance these institutions need to meet their new accounting requirements. But there is also an opportunity for the accounting profession to make a valuable contribution to sound accounting practice in this field of interest by sponsoring institutes, offering courses in institutional accounting, and establishing and maintaining the necessary accounting systems through consultation and the audit function.

This article considers the conceptual problem of allocating general and administrative expenses. It seems clear that a production-related base is more acceptable to government auditors than any other. This is justified where a significant portion of the general and administrative expenses are production-generated. However, where the pool includes little, if any, production-generated expenses any base which is representative of the year's activity should be acceptable. In addition, the article includes recommendations which may help in solving practical problems in allocating administrative expenses.

The article focuses on different approaches of managing the costs involved in large and complex programs of work like weapon systems, space ventures, etc. Structurally, the pert/cost system is based upon three interrelated components--a work breakdown structure, work packages, and the network. It is designed to provide management with the tools necessary to achieve schedule and cost planning, determination, and control in those instances for which conventional management systems are inadequate. The resource allocation procedure, a supplement to the basic Pert/Cost system, is concerned with the problem of efficient allocation of limited resources in accomplishing work programs, and is based on the premise that activities on a network are subject to time/cost trade-offs. This supplement is not considered an essential part of the Pert/Cost system. However, it serves to extend the usefulness and effectiveness of the Pert/Cost system as a management tool. While the concepts involved appear relatively simple, the implementation of the supplement usually requires considerable management education and understanding in order to insure its proper use.

The article examines the way in which antitrust matters are handled in financial reporting. The reports of two major companies, General Electric Co. and Westinghouse Corp., are chosen. Examination is limited to the published annual reports of the companies. Since disclosures were similar up until the time that losses were actually recorded, both companies are treated together in 1939, 1960, and 1961. After that, reporting diverged so both companies are dealt with separately in 1962, 1963, and 1964. In 1960 both companies had already pleaded guilty on the various actions in the antitrust suits. The record of their approach to the problem should lead one to certain conclusions as to the adequacy of their response to this reporting challenge. The differences in treatment are considerable and indicate clearly the possible diversity in present accounting practice. The way in which the reporting challenge was met by these two companies indicates a wide diversity in accounting practice and suggests a lack of imagination in dealing with a problem that involves some complex questions of disclosure and reporting.