Journal Article Consumption in Fixed Proportion Get access Edwin B. Wilson Edwin B. Wilson Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 59, Issue 4, August 1945, Pages 635–639, https://doi.org/10.2307/1883300 Published: 01 August 1945

There are two ways of treating data which are distributed in this manner: (i) One may actually go over to the logarithms y = log x and proceed as though y were normal or nearly so; in this case m is calculated as the mean of y and ois the standard deviation of y and the usual formulas ?m = o,\Vn, uJa = o/V2n would apply. (2) Or one may fit the transform by moments on the original data, in which case the values of m and a may be somewhat different and their standard deviations will be determined by other formulas. We propose to discuss briefly some matters, connected with the logarithmic transform, which we believe have had insufficient emphasis. To make the discussion less abstract we shall give numerical illustrations obtained from the distribution of the percentage net debt (state and municipal) of the forty-eight states relative to the wealth of the state as estimated a decade

The article presents a discussion of cost accounting, the pricing system, and the management factor. It preaches to the conclusion that the cost accounting has an important position in these activities. At the same time, it is not all-important. Judgment and discretion in the use of cost data are necessary to deal successfully with the pricing system. The pricing system itself is in some respects a fetish, especially under the conditions that industry is about to encounter. The ability of management to adapt itself to the conditions it meets and to use its ingenuity and resourcefulness in operating under those conditions leads to the most prosperous and profitable results. In the exercise of that ability of management, cost accounting furnishes data that if used wisely and judiciously, greatly expand the opportunities of the manager. Cost accounting at best can be only a tool of management. The skill with which the tool is used is the deciding factor in dealing with pricing situations. It is the man in management that is the truly important factor.

It has been inferred by critics of the Federal Administration that Federal taxes have been imposed for some reason other than revenue. While there is enough truth in this inference to make it generally acceptable, still it must perhaps be admitted that revenue has been the primary purpose for Federal taxes. The charge has been made, and fairly, that "New Deal" taxes have brought about bad economic results. The cure for these bad results has been suggested to be "Taxation for revenue only" which suggestion carries the inference that tax laws should be framed without consideration of anything but the revenue to be obtained. The fallacy here is plain. It has been suggested recently from more than one quarter that the general welfare would be enhanced if accountants would take a more active interest in the field of economic thought and exert a benevolent influence on legislation affecting national and international economics. It should be recognized that productive enterprise is "the goose that lays the golden egg," and that capital investment is the fundamental element of this enterprise. Federal income taxes should not be discriminatory in their effect on such enterprise, rather enterprises should be encouraged to expand to the end that employment, goods, and services adequate to satisfy human needs and wants shall be provided.