Applied mathematics and computers are confronted by nearly every accountant nowadays. Despite the scarcity of time and little inclination one must know at least one. The accountant presently in a managerial capacity may feel that "know" is too strong a word; after all, he rose to his position without benefit of either discipline. But now, it is a changed environment. Those accountants not due for retirement in the near future, must come to "know" either math or computers, preferably both, in the next three to five years, if accounting is to survive as a contributing discipline in modem commerce. Many people, to whom mathematics are either distasteful or overwhelming apparently find the computer very appealing. One former student of this author perhaps reflects the attitudes of these people. This student had taken a quick course in FORTRAN programming prior to enrolling in the author's cost accounting and cost analysis courses. These courses involved a good deal of applied mathematics and very early in the first semester this student caught fire mathematically

The article discusses the statistical criteria for asset valuation by specific price index. The major theoretical studies of current cost asset valuation in financial reporting rely to some degree on specific price indexes, but have left unsettled certain key issues in implementation. A survey of published implementation studies shows indexes as the dominant adjustment method. This article makes a limited investigation of the potential for measurement of individual asset valuation by specific price indexes for machinery and equipment from the Wholesale Price Index (WPI). The WPI offers the best available source of price indexes to illustrate adjustment procedures. The net overall asset valuation adjustment provides a purchasing power measure specific to whatever group of assets the price index coverage represents, but general with respect to any single asset. The standard deviation of the weighted price relatives making up the index can serve to summarize the gross error in the absolute sum of adjustments to individual asset valuations of an asset group. The individual asset valuation adjustment provides an estimate of the price change specific to the individual asset, but in common practice is based upon the adjusting price index. The probabilistic estimation of specific price indexes by the firm provides advantages of statistical criteria for asset valuation adjustments not available from existing published price indexes.

The central purpose of accounting is to provide information, a few would disagree with the statement, yet many would disagree about the nature of the information that can and should be provided by the accounting process. The purpose of this paper is to create an awareness that at least two definite lines of thought exist and to encourage accountants to give explicit recognition to these lines of thought in their research endeavors. Each line of thought is considered in terms of one, the primary goal of accounting, two, the approach to definition and measurement, and three, the nature of associations. The primary lines of accounting thought with which this paper is concerned are labeled pragmatic and empirical. They are related to the accounting goal of providing information and they have substantially influenced the development of accounting theory. The role of the two lines of accounting thought are similar in many respects. Because of this similarity, the fundamental differences in the goals have often been obscured and many conflicting and incompatible concepts in accounting have not been exposed.

The article discusses the advantages of using Bayesian statistical methods in audit tests. Bayesian methods accept the "subjective" nature of experience and other collateral evidence and blend it with the "objective" nature of actual sample test results. The auditor is constantly faced with a decision situation common to most economic problems-resource allocation to achieve optimal results. Bayesian statistics are decision oriented, concerned in particular with the economic consequences of making right or wrong decisions based on probabilities. The auditor invariably has a good deal of historical and current collateral audit evidence about the expected characteristics of audit test areas. The auditor should integrate this evidence into the statistical analysis of sample results. Bayesian statistics is the method that integrates such evidence in the form of a priori probabilities. The auditor thus gains the maximum value from the audit sample. The auditor is less likely to over-extend or under-extend audit procedures.

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.

This article discusses a new application of calculus and risk analysis of cost-volume-profit changes. Differential calculus has recently been applied to some cost-volume-profit situations as an extension of break-even analysis to find maximum profit levels when cost and/or revenue behavior is curvilinear. All companies consider the effect that changes in selling prices will have on the sales of their product. They are also laboring under a constant cost-push pressure to increase prices. Therefore, companies must forecast expected volume for the various changes in sales price. Then they must determine whether or not such changes will be profitable. The traditional method of approaching these problems is to select several discrete changes in sales prices, forecast new levels of sales at these points, and select the most profitable alternative. All managerial accounting texts explain this method but go no further. This article extends the usual approach by considering a continuum of price changes and incorporating risk in the analysis.

During the Summer of 1968, Hofstra University offered a five-week workshop for prospective teachers of college placement accounting. The workshop was organized as a three-credit course in the Hofstra School of Education. The workshop was organized as a three-credit course in the Hofstra School of Education. The workshop produced a tangible and entirely practicable high school course in college placement accounting. In addition, the give and take of the workshop produced a more important result-a noticeable change of the participants' orientation. The workshop began with the participants questioning whether accounting should and could be taught at the high school level as an academic subject, and concluded with their designing of a general education oriented accounting course that would do credit to many college departments of accounting. The workshop more than fulfilled its objectives, both stated and unstated, of producing instructors equipped and motivated to teach the first semester of the college placement accounting course in their respective high schools. In the future, more such workshops will be scheduled, some perhaps at other high school and college levels and hopefully in different geographical areas. As more high schools offer such courses, it will become possible to use workshops as a means of collecting and sharing experiences and techniques, as well as for the original purpose of training the instructors.

Reviews the book "Manual on Commercial Law: Uniform Commercial Code Edition," 3rd ed., by A. Lincoln Lavine.

Reviews the book, "Cost Finding and Rate Setting for Hospitals."