In most works on cost accounting the topic of variance analysis is handled by multiplying the current value of one variate by the change in the other variate, subtracting this product from the total variance, and then attributing the difference to the second variate. Two-variate analysis is appropriate when any two factors are multiplied to produce a result. Variance in gross profit from one period to another is the change in net sales minus the change in the cost of goods sold. The sales are composed of units sold multiplied by prices per unit. The variance in sales may be subjected to two-variate analysis; so may the variance in the cost of goods sold. When a laborer's performance is compared with predetermined standards, his variance from a predetermined standard may be attributed to the hours worked and the efficiency with which he performs. In any consideration of the economics of price, the two basic variates are the unit price and the quantity. However, the quantity may be correlated with advertising outlay, selling effort, sums spent on product research, or any other desired variate.

Fundamental income tax concepts should be taught in the elementary accounting course. The important reasons for this contention are: (1) Students are interested in the subject of income tax, and they have a need for tax knowledge. (2) Some accounting topics are taught better through the comparison of income tax and conventional accounting treatment. (3) A benefit may accrue to the teaching of the income tax accounting courses since accounting students will bring a better grounding in tax fundamentals to the course. Greater depth of treatment may be possible than is presently the case in courses in income tax accounting. (4) Students majoring in business education will be better prepared for their teaching duties.