Knowledge that Transforms

The Statement of Principles provides a guide for determining costs of research and development contracts. It should assist in both the formulation and the administration of such contracts and should help representatives of educational institutions as well as personnel of the Army and the Navy. This guide should prove to be extremely helpful in the drafting of contracts since it points up specifically which types of costs customarily require contract authorization and which costs are reasonably assignable to the contract in the absence of prohibitive or permissive provisions in the contract. The Statement of Principles should facilitate the drafting of contracts which will be coordinated with the intentions, suggestions and words of warning included in the Statement of Principles. The principal contribution of the Statement of Principles will be in relation to indirect expenses. No single document of this type can settle, in advance of actual performance, all of the questions which will arise regarding expenses to be prorated and the most equitable methods of prorating such expenses. However, the Statement of Principles does bring to a conclusion many points which have caused endless discussion and prolonged negotiation in the past. Some of these points have been resolved in a highly arbitrary manner; nevertheless, here are special answers which appear to be generally practicable. The Statement of Principles is stated for the most part in accounting terms and has been built around accounts and accounting categories of expenses and costs. However, it is not an accounting document, and should not be considered as such. It is a realistic and matter-of-fact survey of the types of costs encountered in the performance of a research or development contract for the Army or the Navy by an educational institution.

The article presents the use of slides in accounting instructions. During 1937 Accounting Department at the Ohio State University, purchased a 3X4 slide projector. Most of the slides consisted of solutions to problems and were used in classes which could be scheduled to meet in the room equipped for projection. It is not necessary to prepare separate copy for each slide in a step-by-step series. All of the slides in the worksheet series were prepared from a single copy of the complete illustration. This was accomplished by blocking out portions of the copy with white paper. The projector can be adapted for use in various size classrooms by means of lenses of different focal lengths. This type of machine because its fan is noisy, can he used more effectively if it is placed behind the students. The fan is necessary because of the high wattage of the lamp required to permit projection in a lighted room. Any type of white surface is suitable for use as a screen for black and white projection.

Reviews the book "Fitting Yourself for Business," by Elizabeth Gregg MacGibbon.

The article presents an overview of the problems which arise in connection with the lecture method in accounting. The University of California has for some time been noted for an extensive use of large lectures in many courses, including some of the courses in accounting. The men in charge of the laboratory work in the advanced courses have the rank of Associate, have a master's degree and are working towards the doctorate. Those in charge of the sections in the elementary course ordinarily are graduate students working towards the MBA degree, and they are given the title of Teaching Assistant. There are five lecture sections in elementary accounting, including both semesters of the course. Correlation of the lecture and laboratory sessions is another problem. Attempts are made to work out an approximately uniform procedure for handling the lectures and laboratory work, particularly as to the emphasis which is to be placed upon certain points. Lectures alone without the laboratory would certainly be very ineffective. A group of good graduate students can often do a better job for the beginning students than a group of part-time instructors drawn from accounting practice.

Reviews the book "Pluration of Income in State Taxation," by George T. Altman and Frank M. Keesling.

Reviews the book "Preparatory Business Mathematics," by Lloyd L. Smail.

The article focuses on the selection and educational training of cost accountants. Each year thousands of young men and women are graduated by the secondary schools and take their places in the financial and industrial world. In recent years a test has been developed that indicates with little degree of doubt whether an individual's interest lies in the things which are important for a given profession or business. This test, called the Strong Test, has been extensively used in recent years. The Scholastic Aptitude Test used for college entrance is composed of two parts, the mathematical and the verbal. The mathematical test measures accuracy speed, and the ordinary use of figures. The verbal test measures the general information of the student and his ability to deal with facts. The selection and training of men for the accounting profession resolves itself into three areas, the modernization of the selection process, the broadening of the training, and the procurement of qualified instructors.

Reviews the book "Introduction to Business," by Raymond E. Gloss and Harold E. Baker.

Reviews the book "The Fund Theory of Accounting and its Implications for Financial Reports," by William J. Vatter.

Reviews the book "Annual Reports to Stockholders," by N. Loyall McLaren.