Knowledge that Transforms

Abstract This article discusses the problems in determining total cost of distribution. It is not the purpose of this paper to discuss a functional comparison of costs within one institution, such as a wholesale grocery house. Neither is any attempt made to compare the costs between two or more institutions operating at the same level in a particular trade; for example, clothing chains. Because of the limitation of time, neither will it be possible to do much more than point out the objectives, methods, and problem connected with total distribution cost analysis. The solution will have to wait upon the further study and experimentation of accountants and marketing men. Many people fail to realize that distribution costs, such as those for transportation, storage, financing, and selling, are incurred long before a product is ready for final processing. A number of the best known marketing institutions handle raw materials and semi-processed goods prior to final manufacture. A study of the accompanying bar charts, however, discloses the fact that distribution costs start with the selling costs of the manufacturer and do not include an additional seven cents, classified as elevator margin and transportation from the producer through the elevator to the manufacturer.

Reviews the book "Capital and Interest," by Montgomery D. Anderson.

Reviews the book "Business Budgets and Budgetary Control," by A.W. Willsmore.

Reviews the book "Cost Accounting Principles and Methods," by Charles Reitell.

Abstract Those of you in public accounting practice will readily recall the statements made by the U.S. governmental officials in the years gone by to the effect that there were so few persons qualified to install and audit the accounts of governmental agencies that the states themselves would have to establish such bureaus. The length to which this has gone will surprise those of you who have not looked into the matter. The author hopes that with a new interest in governmental accounting, one may be able not only to train young men for this professional work but that there will be opportunities to have their graduates tested in the various governmental positions in state, county and city. The author has divided the governmental questions into two general groups, theory and problems. About twenty-seven per cent of the so-called theory questions relate to the definitions of tents used in governmental units or offices, and from one viewpoint are more concerned with public finance than technical governmental accounting. In other words, the author would not include these definitions in his course in governmental accounting.

Reviews the book "The Effect of Size on Corporate Earnings and Conditions," by William L. Crum.

Reviews the book "Economic Development of the United States," 3rd ed., by Isaac Lippincott.

Reviews the book "The Banking Situation-Post War Problems and Developments," by H. Parker Willis and John M. Chapman.

Reviews the book "Gold and Your Money," by Williard E. Atkins.

Abstract The article presents views of the author on novel business and accounting practices in Mexico. These novelties were very amusing and interesting to us and compared strangely with the way of doing things in the U.S. We in the U.S., are complaining about the various records, forms, which have to be kept for purposes of the Revenue, Securities and Securities and Exchange Acts. This complaint would become a mild one, indeed, if our corporations should be compelled to conform to the regulations now existing in Mexico. In the auditing of the cash account we encountered a strange procedure that is followed by the banks in that country. The banks do not return the canceled checks with the bank statement. The reason behind such practice is that the canceled check is the only evidence the bank has for the charge it has made to the company's account and therefore it keeps the check for its own protection. At first such a practice appeared amusing, but on second thought one can not deny that banks were following a safer policy in this respect than our own do. In the U.S. it would be an easy matter for a customer on receiving his canceled checks from the bank to abstract one and then claim that the bank had erred in charging his account for the amount of the check he had abstracted.