Knowledge that Transforms

Abstract Standard cost accounting began as a specialized branch of accounting, in a large degree divorced from the main roots, the general accounts. Gradually, over the years, accountants have endeavored to utilize the benefits of standard costing within the traditional debit-credit system. In the process of integrating this new tool with the methods and aims of financial and cost accounting, the attempt has been to retain the aims originally set forth for standard costing and the aims originally established for financial accounting, unchanged, on a parallel or complementary footing. The principal goal of this paper is to place standard cost accounting, its aims and methods, in proper perspective within the scheme of accounts. The attempt is to show how maximum benefits from standard costing may be achieved by a process of integration with financial accounting, an integration particularly of aims. A further goal is to indicate the usefulness of standard costing to the newly accepted objective of cost accountants, the accomplishment of special cost studies.

Abstract Reviews the book "Standardised Audit Working Papers," by Frederick Staples.

Abstract Reviews the book "Elementary Accounting," by Arthur W. Holmes and Robert A. Meier.

Abstract Reviews the book "Introductory Accounting," by George R. Husband and William J. Schlatter.

Abstract For an industrial or mercantile company the proper determination of its inventory is probably the most difficult part of its periodical accounting. It is also the most important, because of the impact which inventories have upon both the balance sheet and the income statement. Historically, and largely because of credit requirements, the balance sheet was considered of relatively greater importance than it is today, and one of the approved concepts for inventory determination was that it should be stated on a conservative basis. The Committee on Accounting Procedure of the American Institute of Accountants has stated that in accounting for the goods in the inventory "the major objective is the matching of appropriate costs against revenues in order that there may be a proper determination of realized income." Although the cost basis usually results in a proper matching of costs and revenues, nevertheless there are circumstances under which cost may not be the amount properly chargeable against the revenues of future periods.

Abstract Reviews the book "The Statistical Agencies of the Federal Government—A Report to the Commission on Organization of the Executive Branch of the Government," by Frederick C. Mills and Clarence D. Long.

Abstract The article focuses on the use of films in accounting instructions. Only few students have some knowledge of manufacturing and distribution operations. This has long been a handicap to accounting instruction. Plant visitation is one method used to acquaint students with commercial practice. A tour of a business enterprise is very desirable but may have certain disadvantages and in some instances is impractical if not impossible. Motion pictures showing commercial activities are available from many industrial concerns and associations and some schools are using these in lieu of plant visitations. A single film may feature one or more subjects including a company's general activities, the manufacture of a specific product or line of products, physical plant and equipment, employee relations, company history, research and exploration, or financial operations. Motion pictures are in many instances superior to a plant visitation. They can bring together a series of widely dispersed operations. Movies make it possible to bring to students types of industrial activities which are foreign to their locality.

Abstract Internship training in accounting is not a recent development. Several schools have had such programs in successful operation since the middle thirties. Cooperative training programs with industrial organizations, although not on as broad a scale, have been in existence for many years. Many employers view an internship program as a situation where they obtain part-time help to assist them in a busy season or during periods when regular employees are on vacation. They consider their part of the program merely to give the trainee a place to work and to pay him the usual rate for work of the type performed. The trainee learns only what he is able to observe. Firms of this nature should be avoided for internships. An internship program will place extra responsibilities and work on the employer but there are advantages to him that more than compensate for this additional trouble. In summary, the main points can be stated as: (1)Internship training programs have definite advantages to the student, to the cooperating business organization, and to the school. (2) There are no real disadvantages connected with internship training. Most of the difficulties encountered are the result of (a) poor selection of participants, (b) inadequate planning on the part of the school and the cooperating business, and (c) insufficient supervision and follow- through. (3) Internship training programs will require more work from the student, the representative of the cooperating business, and the university faculty. The results are well worth the added trouble. (4) Industrial internships have great merit and should receive increased attention from educators and industry.

Abstract Reviews the book "Intermediate Accounting," by Arthur W. Holmes and Robert A. Meier.

Abstract Reviews the book "Estate Planning," by Joseph Trachtman.