This article presents information on cost coefficients in a linear programming model. The discussion indicates that opportunity cost is not necessarily the appropriate definition. A product mix linear programming (LP) model is used to illustrate ideas. In considering what definition of input prices is relevant in LP, other researchers have concluded that input quantities should be prices using an opportunity cost per unit of input, which is the highest return foregone because the input is used in the system modeled. Researcher H.G. Jensen assumes that the best alternative foregone from which these opportunity costs are derived is either the alternative of not acquiring the inputs or the sacrificed alternative of selling the inputs if they are on hand. If opportunity costs per unit are used to price inputs on hand, then the optimal solution indicates the excess profit obtained by using these inputs in the system modeled over what could be obtained by immediately liquidating them. This profit measure, therefore, reflects a short-run view of the firm.

Reviews the book "Measurement and Environmental Deterioration," by Boyd Collier.

The article is a reply to a comment by the researchers Michael L. Moore and Stephen Buzby on the author's work, published in the July 1, 1972 issue of the journal "The Accounting Review." According to the authors, Moore and Buzby have made several comments on the index of disclosure, which was used in the authors' research to measure the quality of disclosure in annual reports. To test the effectiveness of their index, the authors compared their results with those of the twenty-sixth annual survey by "Financial World." Moore and Buzby noted that the test is somewhat misleading because "Financial World" only punishes the list of award winning companies and the failure of some of the companies in the bottom 23 percent of our sample to win an award may only mean that they were not among the reports surveyed. As mentioned in the authors' article, only 9 of the bottom 23 percent of their sample companies received merit certificates from "Financial World." One of the comments by Moore and Buzby deals with the index's inability to discriminate. This is not true since variable weights were used in scoring annual reports.

This article focuses on the effects of Accounting Principles Board Opinion (APB) No. 15 on earnings per share. To date the few research studies con ducted on the effects of APB No. 15 are entirely concerned with an analysis of the validity of the two-thirds rule, a cutoff point established by the Board to deter- mine the number of common stock equivalents of convertible debt which are to be used in the calculation of primary earnings per share. The Opinion concluded that a convertible security should be considered a common stock equivalent at the time of issuance if, based on market price, it has a cash yield of less than 664 percent of then current bank prime interest rate. The time issuance is then defined as the date when agreement as to terms has been reached and announced. In addition to the firm's capital structure, information about all possible relationships between the prime rate and the cash yields on the three types of bonds is input in matrix forth. For our purpose this matrix is predetermined by three rows corresponding to straight debt, convertible debt and debt with warrants and eight columns corresponding to eight possible economic conditions which are described later.

This article describes an experiment with the curriculum for the introductory accounting course. A necessary complementary objective was an increase in the students' understanding of balance sheet and the relationships between income measurement, the balance sheet, and the funds statement. A corollary objective was a decrease in the reliance on double-entry bookkeeping as the basic method of teaching accounting concepts. A completed venture model was used first to present the basic concept of income determination. In a completed venture, income and cash flow are easily related. Cash receipts and cash disbursements are familiar ideas to most students. Conventional pedagogy begins by explaining income as a change in wealth, or net worth, an explanation which presumes a rather sophisticated definition for assets and liabilities. The course introduces periodic income determination for an on-going entity by using the ideas introduced in the discussion of a completed venture. Cash flows related to operating transactions serve as the foundation for periodic measurement of income.