Abstract Statistical sampling methods for accountants and auditors have been actively discussed for about 12 years. Something of the extent of interest in the subject can be seen in the bibliography recently made available by the American Institute of C.P.A.'s. The subject matter is divided into two major areas: acceptance sampling and estimation. To these there has been added a third that is of special current interest to auditors; it is called discovery or exploratory sampling. Two of the applications, one of acceptance sampling and the discovery sampling technique, are primarily auditing applications. Discovery sampling is a procedure by which one can draw a sample with specified assurance of obtaining in the sample at least one example of a certain class of the population. This classification must not be insisted upon, however, for all the techniques can be used as a part of the accounting process or by auditors in checking the accounting product. The only difference between the accounting and auditing application may be the timing of it and even this may disappear when an auditor observes the taking of physical inventory.

Abstract The purpose of the article is to set forth the general view that there is no such thing as a loss due to idle capacity for purposes of income measurement. In order to illustrate this point of view the fixed or capacity costs of manufacturing will be classified as capacity costs related to fixed assets and capacity costs related to semi- variable costs. In each case the concept of an idle capacity loss will be shown to be inconsistent with the process of income measurement. The portion of fixed manufacturing overhead costs related to fixed assets should be allocated to production under a unit-of-output amortization plan which cannot yield an idle capacity loss. The portion of fixed manufacturing overhead costs related to semi-variable cost inputs should be allocated to whatever output is produced within the range for which these costs are absolutely necessary, therefore they cannot yield an idle capacity loss on the basis of changes in production volume. Since there are no other categories of fixed manufacturing overhead costs and variable overhead costs are allocated to actual output, idle capacity as a loss does not really exist.

Abstract Series on the early stages of the Federal Government spending process--new obligational authority and obligations incurred--can be prepared from available operational statistics. Consideration should be given by the Federal agencies involved to preparing and publishing such series on a regular basis. Such budget information would be useful and complementary additions to the sections on government expenditures in such publications as the Treasury Bulletin, the Economic Indicators, the Federal Reserve Bulletin, and the Survey of Current Business.

Reviews the book "Sampling in a Nutshell," by Morris James Slonim.

Reviews the book "Basic Business Law," by David S. Craig and Rate A. Howell.

Abstract Depreciation methods which, for a single asset or for a group, record relatively high charges during earlier periods of life. The adoption of such methods has, of course, been stimulated by their acceptance for income-tax purposes. Even though no over-all saving in tax may be expected, the fact that payment of tax money may be significantly deferred is sufficient basis in many cases for adoption of one of the declining charges methods for tax purposes. One has already been treated to an abundance of literature on the special problem raised where depreciation is taken more rapidly for tax purposes than for general accounting purposes. Thus far it has been argued that where a depreciable asset is subject to a deterioration factor it is more appropriate to use a form of declining-charges depreciation than it is to use the traditional straight-line procedure. It will next be argued that straight-line procedure is inappropriate even if the asset in question has a deterioration factor of zero, that is, even where the asset continues to produce the same level of service, physical or economic, in each period throughout its entire life.

Abstract The article discusses the idea of an accounting court which will establish authoritative accounting principles and which may tend to demonstrate errors in reasoning. An accounting court is a dubious method of arriving at an acceptable principle, since there are no laws which are to be used as a guide, no method of appealing any verdict, nor any means of changing laws to obtain equity. Since the professed purpose of the court is one of establishing principle it would seem that its function would be more legislative than judicial. The objective of disclosing errors in reasoning is admirable, but when differences in opinions are due to value judgments as to the credibility of a particular reason and, therefore, the probabilities of an assumption, the objective may be impossible to achieve. What might prove useful for the best value judgment of all accountants is an extensive compilation and critical analysis of reasons that have been advanced through the years for the basic assumptions of accounting.

Reviews the book "Advanced Accounting," 4th ed., by E. Bryan Smyth.

Reviews the book "Auditing Principles and Procedures," 5th ed., by Arthur W. Holmes.