Direct costing has become one of the most prominent current issues in the continuing discussion that surrounds the evolution of accounting theory and practice. Hence, it is appropriate at this time to review some of the arguments for and against the concept and to attempt to identify the principal issues in the controversy. The purpose of the author in this article is to examine these issues critically and dispassionately. This presentation is in the nature of an interim report, with primary attention focused upon the development and present status of direct costing but with some consideration of the prospects for the future also. Author's objective is to crystallize issues. It is possible that, given the present status of the accountant's art, they are irresolvable. The discussion in this paper will be confined to the implications of direct costing in external reports. There are two reasons for this. First, as indicated, it is in external reporting that the real controversy lies today. Second, the basic criterion guiding the selection of internal reporting practices is utility to management.

The article informs that the new investment credit which entered accounting thought as a result of the Revenue Act of 1962, has stimulated some penetrating thinking regarding the accounting nature of the tax credit which arises because of some financial or accounting move by a firm. In addition, there appears to be a direct relationship between the accounting treatment of the investment credit and so-called "deferred income taxes." While many accountants argue the merits of showing "deferred income taxes" as a liability or as a component of storkholders' equity, it seems to this writer that here again the only acceptable treatment is an integration of financial and tax accounting with the result of showing the "deferred income taxes" as contra asset. The first question to be resolved is how to measure the cost of the asset involved-be it one which is subject to the investment credit or one whose depreciation method gives rise to "deferred income taxes." The American Accounting Association has stated that the value of an asset is the money equivalent of its service potentials. Conceptually, this is the sum of the future market prices of all streams of service to be derived, discounted by probability and interest factors to their present worth.

A physical flow analogy might be of considerable benefit in aiding the student in reasoning through the adjusting process of expenses topic in principles instruction. The purpose of this paper is to present such an analogy. When a business entity disburses money for any relatively short lived item to be used in the operation of the business it may elect to classify this disbursement as an asset or as an expense. The choice at this time may be compared to storage tanks intended for items awaiting final disposition. Point A represents a closed valve that is opened only at adjustment time. The direction of flow when A is opened may be assumed from the underlying purpose of the adjusting process, that is, to charge the Profit and Loss Summary with the amounts used in the current period that pass through the expense storage tank and to leave in asset storage the amounts not yet used that will benefit future accounting periods. An equilibrium position will be achieved when the amounts in the respective tanks correspond to this underlying purpose. Point B represents a closed valve that will open at closing time and only after the equilibrium position has been attained.

The article informs that the steady appearance of new text-books on auditing is a indication that the study of the subject has an assured place in accounting courses and business schools. It can perhaps also be reasonably inferred that the general similarity in distribution of space to aspects of auditing in The major textbooks indicates a general consensus among writers and teachers regarding the proper field of enquiry and the stress to be laid on various parts of the subject, There are, however, some voices critical of the way it is frequently taught and even critical of granting it a place in undergraduate accounting studies. In Australia there was some feeling at the 1962 meeting of accounting teachers' that auditing along with other purely professional work in accounting should be deferred to master's degree level, or at any rate until alter taking the bachelor's degree. In a number of places, the exposition of each book becomes quite conversational, dispensing advice on how the professional auditor should conduct himself, and indicating the respectability of his activities. Typically, the auditor is a respected member of the business community and frequently holds important civic posts. His counsel is sought by business men, and, indeed, many members of the profession have transferred to business and occupy important management positions.

Reviews the book "Fundamental Accounting Principles," by William W. Pyle and John Arch White.

Reviews the book "Accounting and Economic Decisions," by Donald A. Corbin.

This article, resulting from a two-year study at one large Midwestern University, purports to illustrate evidence related to greater evaluation and modification in course offerings and content with respect to the course offering of Principles of Accounting. Principles of Accounting had been traditionally taught at this university to sophomore students as a two-semester course of eight credit hours. The faculty of the College of Business Administration, in re-evaluating its total four-year undergraduate curriculum, elected to transfer this fundamental course to the freshman year. The most compelling argument for presenting accounting in the sophomore year is to be found in the work of two writers R.A. Gordon and F.C. Pierson titled "Gordon and Pierson Reports" that was published in 1959, which gave rise to a great number of literature on radical change in collegiate schools of business. In rebuttal to the argument presented by writers, authors consider the fact that the vast majority of students have only four years to spend in college and that the two most limiting factors to further formal education are academic abilities and financial resources.

Reviews the book Reviews two books on accounting. "The Accounting Process," by H.A. Finney and Herbert E. Miller; "The Accounting Process," by Gerald O. Wentworth, A. Thompson Montgomery, James A. Gowen and Thomas W. Harrell.

The article presents a report of the Committee on Educational Standards. The purpose of accounting education is to prepare students for careers in accounting and in related fields and to prepare them to deal effectively with problems they will face as practicing members of their profession and as responsible citizens of the social and economic community in which they live. In recent years, the pattern of collegiate education for business in the U.S. has received considerable attention. The resulting re-examination of objectives, evaluations of course content, and revisions of curricula have had a major impact on accounting education as an element in the business school program. As the accounting function in modern society grows, the role of the accountant inevitably becomes larger and more important. The demand for well-educated accountants is currently high and promises to remain strong in the foreseeable future. The purpose of this study is to formulate some guidelines pointing to the educational standards that should prevail in any institution of higher education that offers degree programs involving a major in accounting, to the end that one or more degrees in accounting will indicate a standard of educational background and qualification for a professional field.