Knowledge that Transforms

Abstract This article focuses on the cost of distribution from the manufacturer's point of view. Distribution costs involve the total cost of carrying goods from producer to consumer, the costs of operating retail stores, the costs of operating wholesale houses, transportation costs and the manufacturer's selling costs. The author's remarks today are concerned chiefly with the cost of distribution from the standpoint of the manufacturer. When the individual manufacturer sets out to find ways and means of reducing his distribution expense, one of the first questions that canes to his mind is how do his costs compare with those of other manufactures in his industry selling the same or a similar type of product. And it was in an attempt to aid in answering this question that the Association of National Advertisers undertook a few months ago to assemble distribution cost figures from representative manufacturers in leading industries of the country. It was hoped that we could provide a yardstick by which each individual manufacturer could determine whether or not his own costs of distribution were in line with those his competitors.

Abstract Keeping and supervising the accounts of a municipality and assisting the administrative officers through the medium of timely and proper information requires a higher degree of intelligence than does such a position with a mercantile concern handling a similar volume of business. In addition to preparing budgets, keeping the various funds properly accounted for and preparing statements for administrative guidance, administrators must know the numerous legal requirements affecting municipal affairs. It is on this recommendation that all friends and advocates of honest, economical government should focus attention, recognizing that at the present time approximately 20% of the total income of the United States is expended by local governments such as townships, school districts, cities, park districts, sanitary districts, and counties. It is recognized of course that accounting systems themselves cannot make people honest, but it is maintained that adequate systems will enable honest and well meaning public officials to administer the affairs much more successfully.

Reviews the book "Wholesale Distribution of Breakfast Cereals in Southern Michigan," by Edgar H. Gault and Raymond F. Smith.

Abstract A survey of the progress of accounting as a science quickly discloses that advancement in the field has been largely dependent upon an adequate differentiation among assets, expenses, liabilities, income, receipts, expenditures and the like. A correct separation of expenditures into assets and expenses on the one hand and of receipts into liabilities and income on the other hand, makes possible the attainment of modern accountancy and financial statements. The early systems of bookkeeping made no adequate distinction between expenses and assets and income and receipts. These items are intimately related and to differentiate among them means the correct calculation of profits and losses and financial conditions. A correct statement of assets cannot be made without a correct computation of expenses. Likewise, an accurate measure of income is not attainable without an adequate separation of income from receipts. If any one of these four items is incorrect, then either one or both of the two major financial statements must likewise be fallacious. Second only in importance to the recognition of the distinction among these items, is the determination of the moment when expense was separated from the assets and when the income arose in the assets.

Reviews the book "Corporation Finance," by Henry E. Hoagland.

Reviews the book "World Agriculture and the Depression," by Vladimir P. Timoshenko.

Reviews the book "Business Law, Principles and Cases," by Thomas S. Kerr.

Reviews the book "Money: Gold, Silver and Paper," by Francis W. Hirst.

Reviews the book "The Investor Pays," by Max Loventhal.

Reviews two volumes of the book "Twenty Years of Federal Reserve Policy," by S.E. Harris.