Industrial Accounting, Bookkeeping

A method is shown for finding all solutions to the generalized von Neumann model formulated by Kemeny, Morgenstern, and Thompson. The method uses results from decomposing economic production systems to extend the algorithm of Hamburger, Thompson, and Weil. THIS ARTICLE shows how the results derived by Weil [5, 6] for decomposable production systems can be used to extend the results of Hamburger, Thompson, and Weil [1] for performing calculations on the generalized von Neumann model of an expanding economy formulated by Kemeny, Morgenstern, and Thompson [2]. A method is shown for finding all solutions to a generalized von Neumann model. The model represents an economy of m goods and n fixed-coefficient, constantreturns-to-scale processes for producing those goods. The set of processes form an m by n input matrix A and an m by n output matrix B. When the jth process is operated at unit intensity the amount ai of the ith good must be supplied at the beginning of the production period and the amount bij of the jth good is produced at the end of the period. The element xj, xj > 0, Ixj = 1, of the stochastic column vector x is the level at which the jth activity is operated. The element yi of the stochastic row vector y is the price of the ith good. Von Neumann required that

of reserves should grow at approximately the same rate as global wealth. A lower growth rate of reserves would impose undesirable policy constraints, while a higher growth rate would imply an inflationary bias to the world economy. Judging from the data used in this study, rates of increase of national wealth varied approximately 2.5 per cent and 7.5 per cent, with a cluster around the 5 per cent figure. If the behavior of the governmental authorities follows the pattern found in this study, we might assume that they will want to increase their stock of international reserves by approximately 5 per cent annually. Table 2 pre-

A question that bedevils the academic economist, the trustbuster, and the community at large is whether conglomerate merger activity is a force for good or evil. In common with horizontal and vertical merger activity, the critical consideration is whether conglomerate mergers produce better uses of resources, increases in monopoly power, or some mixture of these two results. Economists have been examining these mergers in an effort to determine whether efficiency in the use of resources is, in fact, promoted. However, when investigating this question, the subject of inquiry is usually confined to the optimizing decision of the firm. It has been argued that conglomerate activity involves the best use of resources from the standpoint of the firm.

R. L. Thomas, P. J. M. Stoney; A Note on the Dynamic Properties of the Hines Inflation Model, The Review of Economic Studies, Volume 37, Issue 2, 1 April 1970,

Abstract Each year at the University of Michigan some 500 undergraduates in the fall term and another 300 in the spring enroll, for all sorts of reasons, in the Accounting course. almost none, then, has any thought of professional accounting as a career. Each student meets individually with an interviewer. Some interviewers are accompanied by assistants for at least a half hour, twelve students constitutes the maximum number handled by one interviewer during a full 9 A.M. to 5 P.M. day. Prior to the interview day each interviewer is supplied with a copy of his or her schedule and with a set of the data sheets for his group of students. At the next class meeting the students who had been interviewed are asked to fill out an appraisal questionnaire to provide with some notion of the degree of success of the program. Later a set of the questionnaire replies from his own group is sent to the interviewer. The program is repeated with very little modification during the second semester and a second chance to the students is given who had not participated when offered the opportunity during the first semester. A substantial number takes advantage of this opportunity.

Abstract The article examines several factors of the total social environment, which influence educational philosophy for accounting. To be sure, many changes have occurred in American education during the almost two hundred years of our national existence. But most of the significant changes in American education during the 20th Century have dealt with form and techniques rather than with primary purpose. In light of the continuing turmoil on college and university campuses, it is timely to note that more and more educators are questioning the validity of higher education for everyone. It is commonplace that the objectives of accounting education are interrelated and intertwined with the objectives of education for life in general and, in particular, with the objectives of education for involvement in business. One of the revered members of the accounting profession in addressing a group of accounting educators a few years ago pointed out that the greatest educational problem of the profession is that there are almost too many things that accountants should be taught. The concept of standardized curricula and uniform knowledge for the accounting graduate should be abandoned.

Abstract This article presents a discussion of two possible approaches to problems that derive from the apparent gap between business and academic environments. Many firms have taken the initiative in this area, and their Faculty Residency Programs are worthy of much praise. Some faculties have made useful efforts to associate executives with campus programs. In summary, there is little doubt that interested firms can and should obtain benefits from a Faculty Residency Program, either directly through using the faculty member in specialized projects, or indirectly, through the active utilization of his objective attitude in the decision making process. If the faculty member is to gain from this relationship, certain conditions must similarly be present. It is axiomatic that the academician be compatible in philosophy with his executive superior. Similarly important is the need for a well-defined project coupled with a real freedom to explore all avenues for attacking problems. Given these features, the Faculty Residency Program should afford substantial benefits to all involved parties.