Reviews the book "Business Mathematics," by Cleon C. Richtmeyer and Judson W. Foust.

Reviews the book "Accounting for Labor Costs and Labor Related Cost."

Abstract The article presents findings by the author on the progress made with respect to the distribution of a career pamphlet called "Young Eyes." The Task Committee on Student Personnel of the American Accounting Association was charged with the responsibility of preparing a career pamphlet describing the varied opportunities and depicting some of the challenges offered by the accounting profession. An article with the cooperation of the American Institute of Certified Public Accountants and the Institute of Internal Auditors, was published in January 1958 under the title "Young Eyes on Accounting," in an attempt to show what had been done so far and what it was hoped would be done in the future with Young Eyes. Two phases were decided by the Task Committee for distribution. In the first phase over two hundred editors of selected accounting, educational, and vocational periodicals were contacted and asked to run a news item on the nature and availability of Young Eyes. The second phase was one of following up and trying to maintain, and, wherever possible, increase the interest created during the initial phase. According to the findings 137, 340 copies of the pamphlet were distributed.

Abstract The article presents a study that highlights the separation within the group of functions of management from those of ownership and the concentration of the former in a few hands. It has resulted in fact in a large share of profits being retained in the business. The owners have little opportunity to dispose these profits as they would if the profit were all distributed in dividends. 29.4 per cent of their net income is retained within the larger corporation during the period 1922 to 1927. This retention may be intended to avoid shortages of liquid resources in periods of restricted business or to permit the continued payment of dividends in the absence of adequate current profits. But it also facilitates expansion without the necessity of issuing new securities. Those managers who find size attractive can satisfy their desire without having to submit their plans to the test of the capital market. The study asserts that if the corporation is to grow, investment opportunities must be deliberately created and continuously available.

Abstract The article asserts that accounting teachers have a definite responsibility, not only to accounting students but also to the accounting profession, to keep abreast in this ever-changing accounting world. Although these teachers have certain resources available, at times they may be inadequate and as a consequence they may have to look elsewhere for assistance. When looking elsewhere perhaps the faculty fellowship, if available, will fulfill this need. The faculty fellowship is considered a definite step in the right direction, and it is his hope that other firms will initiate similar programs. In addition to acquiring new, or as the case may be, broadening old technical knowledge the fellowship is also an excellent morale builder or interest stimulator. After teaching for several years and then being exposed to the interest and enthusiasm of the various staff members, it challenges one to want to get back in the classroom and turn out the best product he can possibly produce. Teaching from the textbook from day to day may not be as stimulating as it should be, so perhaps teachers need to be reminded occasionally that they are members of a vital and dynamic profession.

Abstract Forces, both within the accounting profession and without, are constantly subjecting the accountant to ever-increasing pressures in an attempt to induce him to change some of his basic principles. Many of these forces can be attributed, either directly or indirectly to economists. It is the writer's belief that accounting and economics are more closely related and thus more interdependent than is commonly thought. It is also his belief that if the accountant and the economist were both more aware of their relationship and interdependency, both might derive mutual benefit there-from. Both accounting and economics are concerned with property and with human activities relating to the production, exchange, and consumption of this property. Generally speaking it is the point of view that differentiates one from the other. Whereas economics treats a society as a whole, of wealth in general, of the wants of people, and the satisfaction of those wants; accounting treats the individual units in society, the property of each unit, the requirements of each unit, and the efforts and accomplishments of each unit.

Reviews the book "Accounting Reports for Management," Ronello B. Lewis.

Abstract For too many years accounting by governmental bodies has been looked on as a necessary evil; one whose contribution was limited to a historical record of each transaction and to approving obligating documents when funds were available. Techniques of financial control have only recently been used to any extent. There are thousands of governmental units that are not now using the better management methods. The greater use of accounting data in planning and control may come as a surprise to some familiar only with the more traditional role of accounting in government. Greater awareness and acceptance of the need for variable patterns of accounting compatible with assignments of managerial responsibility and the type of operation being conducted represents a maturing of governmental accounting. Earlier, budgetary ceilings on available cash caused attention to be directed only to cash controls, while control of operations and other available resources was minimized or non-existent.

Abstract The article presents observations of the author on a break-even Chart. The author believes that less emphasis should be placed on the specific break-even point and the attention should be on the probable profit or loss results of alternative courses of action. Break-even points are not necessary in arriving at intelligent decisions which involve cost-volume-profit relationships. Break-even points do exist and for this reason, it may be of academic interest to know what they are. But if they can be used, it is suggested that there is almost invariably a better approach to the problem. The author suggests that Break-even charts should be accompanied with detailed budgets and used with considerable caution only when the assumptions underlying the charts are thoroughly understood. Of more importance, however, is the placing of emphasis in planning on the relative profitability of alternative courses of action rather than the break-even point. The author concludes that to compute a break-even point, recognition of whether or not a knowledge of the point is pertinent to a decision faced by management and if it is pertinent, in what way is required.

Abstract The author comments on the article "Accounting and Reporting Standards for Corporate Financial Statements-1957 Revision," by George J. Staubus in the January 1958 issue of the periodical "The Accounting Review." The article states that "Distinguishing between monetary assets and non-monetary assets paves the way for several possible desirable developments in accounting practice." But, no hint is given of the nature of these developments which are so possible and so desirable. Mr. Staubus seemed to go to considerable length in praising the committee for absurdities of which it might fairly plead innocent. With regard to "equities," the committee shows a remarkable unwillingness to use plain words and Mr. Staubus plunges even deeper into the twilight of involved and obscure wordiness. Both seem loath to admit that the liabilities of an enterprise are merely the debts that a court will, at need, enforce against the enterprise. A major weakness of the committee report is that it virtually ignores the legal framework. The committee has accomplished miracles of round-about generalization in avoiding the fundamental admission that one major purpose of accounting is the rendering of a report of stewardship by managers to owners. Mr. Staubus rightly criticizes the committee for its indirect approach to the problem of defining the audience to which accounting reports are addressed.