In recent years, a number of power spectra have been estimated from economic data and the majority have been found to be of a similar shape. A number of implications of this shape are discussed, particular attention being paid to the reality of business cycles, stability and control problems, and model building.

Abstract The article focuses on the issue of revolutionizing accounting theory, which has been a left out proposal in the past few years. Revolutionaries have devoted a high proportion of their total effort to the related problems of profit determination and asset valuation. C.T. Horngren, a scholar, suggested a compromise plan which attempts to accommodate clashing interpretations of the significance of realization only. Horngren's article attempts, through a critical examination of some important proposals of recent years, to discover the root cause of disagreement over the optimum concept of value and to suggest a compromise path along which the revolution in valuation and income theory may progress. The article concludes that a compromise solution to this conflict of widely divergent views in this area would be to adopt a valuation rule that requires each asset to be valued according to the basis offering "sufficiently definite verifiable evidence" and yielding what is believed to be the closest approximation to the present value of the asset's future cash flows.

Abstract This article considers the conceptual problem of allocating general and administrative expenses. It seems clear that a production-related base is more acceptable to government auditors than any other. This is justified where a significant portion of the general and administrative expenses are production-generated. However, where the pool includes little, if any, production-generated expenses any base which is representative of the year's activity should be acceptable. In addition, the article includes recommendations which may help in solving practical problems in allocating administrative expenses.

Abstract The article focuses on different approaches of managing the costs involved in large and complex programs of work like weapon systems, space ventures, etc. Structurally, the pert/cost system is based upon three interrelated components--a work breakdown structure, work packages, and the network. It is designed to provide management with the tools necessary to achieve schedule and cost planning, determination, and control in those instances for which conventional management systems are inadequate. The resource allocation procedure, a supplement to the basic Pert/Cost system, is concerned with the problem of efficient allocation of limited resources in accomplishing work programs, and is based on the premise that activities on a network are subject to time/cost trade-offs. This supplement is not considered an essential part of the Pert/Cost system. However, it serves to extend the usefulness and effectiveness of the Pert/Cost system as a management tool. While the concepts involved appear relatively simple, the implementation of the supplement usually requires considerable management education and understanding in order to insure its proper use.

Abstract The accounting requirements of Medicare are more rigorous than appears obvious on the surface. Many of the providers, particularly in the nursing home sector, lack adequate accounting systems in the present circumstances--without the added requirements of Medicare. Many of these institutions will find it necessary to convert from their present cash method of accounting to an accrual basis that includes a costing, standard costing, and periodic reporting capability. The resources of the individual institutions, monetarily and technically, are insufficient to cope with the changes that are needed. The intermediaries recognized in Public Law 89-97 will be able to provide some of the assistance these institutions need to meet their new accounting requirements. But there is also an opportunity for the accounting profession to make a valuable contribution to sound accounting practice in this field of interest by sponsoring institutes, offering courses in institutional accounting, and establishing and maintaining the necessary accounting systems through consultation and the audit function.

Abstract The article focuses on intermediate accounting. A case study is presented wherein the variations in the value of the smelter is used to reinforce the logic of the accountant's concepts of verifiable objective evidence and cost as a measure of value. In 1953, the U.S. government entered into a long-term contract with Nickel Smelting Co. for the development of a substantial nickel deposit owned by it, but heretofore unused. Under the terms of the contract the company was to build the smelter with capital funds advanced by the government. The smelter was built during 1953-54, and began producing in quantity in 1935. Initial construction costs were $21,000,000, and an additional $1,800,000 was spent during 1955-56 for replacements and improvements, all of which were capitalized. After making all the calculations it was concluded that at least eight different values, ranging from zero to $15 million were identified. These differing values indicated why many accountants consistently adhere to recorded cost, with all its weaknesses, and to verifiable, objective evidence.

Abstract The article focuses on the evaluation of student performances. Some schools make student evaluations known to the student body, faculty, or university administration. This usually takes the form of a booklet and may be published for everyone, or only for faculty use. Its purpose is to point out the bad teachers. Faculty, for obvious reasons, have mixed sentiments about such a publication. But, in general it is considered to upgrade the quality level of the faculty by focusing attention upon those doing the worst job of instruction. A complicating factor is that once the student completes the course, it is hard to recall in any detail his performance other than the final course grade. Except for the few outstanding students, it is hard to give opinions about performance and qualities when inquiries are made. One means of having a permanent record of student evaluation is by using a rating sheet such as that developed at the University of Southern California. The questionnaire covers three basic areas, the student's relationship to class activities, personal qualities, and suitability for employment in a certified public accountants firm.

Reviews the book "Accounting and Analytical Methods," by Richard Mattessich.