Abstract Reviews the book "CPA Review Manual," 4th ed., by Herbert E. Miller and George C. Mead.

Abstract The article presents a discussion on the topic related to direct costing, which appeared in the January 1964 issue of the journal The Accounting Review. The paper, like most of its predecessors, had used two opposite poles of inventory and cost measurement, full absorption cost and variable cost. While certainly not the burden of the paper, the impression was left with the reader that these are the two relevant valuation measures to discuss. The author of this article differs with this view. The aim of this paper has been to focus attention on the forgotten third man in the direct versus absorption cost controversy. Standard cost, used with a meaningful fixed overhead application base, can supply useful information, and realistic inventory and income statement values. For many internal management purposes it may also be more useful than the standard cost utilized above. For external reporting, and for other internal management purposes, standard cost, as illustrated in this article, presents possibly more relevant and useful balance sheet inventory value and income statement emphasis.

Abstract The article focuses on the determination of goodwill and bonus on admission of partner. It focuses on an understanding of the logic involved in various methods of admitting partners. Partnership change problems (withdrawal, admission, substitution, and dissolution) can be among the most challenging, thought-provoking and interesting experiences in the introductory accounting course. In fact, the values to be derived from thinking through such problems greatly outweigh the transient value of getting the correct solution to a particular problem. The article emphasizes that the more that problems such as partnership capital changes are presented by means of routine mathematical formulae, the more harm is done to the thinking process. The logic underlying solution to admission problem should be stressed. For a number of years the following simple outline form has been used in presenting partnership changes. There are only so many possibilities inherent in a situation; once a person understands the problem at hand he has won the battle.

Reviews the book "Cost Accounting," 3rd ed., by Adolph Matz, Othel J. Curry and George W. Frank.