lik NAIIONAL h6goGIATION OF COST ACCOUdTANT'6

N E W V O R K C 1 7 1 V

N. A. C. A. BULLETIN

Vol. X, No. 8 December 15, 1928

I N TH REE SECT IO N S

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Bank Credit and Budgetary Control

T h i s bu l l e t in is pub l i s he d semi - monthly by the N a t i on a l

As s ocia t i on of Cost Ac c ou n t an t s , 2 6 We s t 44 t h St . , Ne wY o r k , S ubs cr i p t i on pr i ce $ 15 . 00 pe r ye ar . E n t e re d at

the P os t Of f i ce , N e w Y o r k , N . Y . , a s s e c ond c l as s mat t e r

Au gus t 28 , 1925 , u n d e r t he Act of M a r c h 3, 187 9 .

Bank Credit and Budgetary Control

ByMICHAEL H. CAHILL,

President, Utica National Bank and Trust Company,Utica, N. Y.

and

JO H N F . PUTNAM,Comptroller, Holeproof Hosiery Company,

Milwaukee, Wisconsin

The National Association of Cost Accountants does not stand sponsor for views expressedby the writers of articles issued as Publications.The object of the Official Publications of theAssociation is to place before the membersideas which it is hoped may prove interestingand suggestive. The articles will cover a widerange of subjects and present many differentviewpoints. It is not intended that they shallreflect the particular ideas of any individualor group. Constructive comments on any ofthe Publications will be welcome.

Additional copies of this Publication may beobtained from the office of the secretary. Theprice to members is twenty -five cents per copyand to non- members seventy -five cents per copy.

ED I T O R I A L D E P A R T M E N T N O T E

The budget is usually looked upon as primarily aninstrument of control in the hands of management, andthat probably is its primary function. It bears to allphases of business management somewhat the same rela-tion that standard costs does to production management.Because it may be made so effective a mea ts of controlof a ll business activities, the concern using the budgetarymethods has an inside road to the favor of the bankerto whom application is made for a loan. We are gladt o p re s e n t h e re t wo pape rs , t he one gi v i ng a ban ke r ' s v i e v ,of budgetary control, the other pointing out in summaryform the use of the budget as a business compass.

Mr. M. H. Cahill , the author of the first paper entit led,A Banker's Views on Budgetary Control, is a graduate ofGeorgetown University. Among the important posts hehas held since graduation are: National Bank Examiner,Assistant Counsel to Banking and Currency Committeeduring Money Trust Investigation, Assistant DistrictAttorney Steuben County, N. Y., Practicing Attorneyfive years, New York State, Assistant Cashier -TrustOfficer of Irving N ational Bank, New York City, Assist-ant Vice- President, Irving Bank - Columbia Trust Com-pany, New York City, President, Utica National Bankand Trust Company, Utica, N. Y. and Chairman, Legis-lative Committee, New York State Bankers' Association.

His paper was presented before a meeting of the UticaChapter, N. A. C. A.

Mr. John F. Putnam, author of the second paper en-titled, The Budget as a Business Compass, is a graduateof Union College with the degree of A.B. and of NewYork University, School of Commerce, Accounts andFinance, with the degree of B.C.S. He was staff account-ant on the Bureau of Municipal Research in New YorkCity and staff accountant and director of the Citizens'Bureau of Municipal Research in Milwaukee, Wisconsinof which institution he is at present a member of theB o ar d o f D i r e c t o r s a nd C h a i r m a n o f t h e E xe cu t i ve C o m-mittee. During the war he was staff assistant to Vice -President of Administra tion, Howard Coonley, of theEmergency Fleet Corporation, Organization and MethodsSection. After returning to rivate business, he becameComptroller of the Holeproof� Hosiery Company. H e is

a member of the Society of Industrial Engineers and anational director of that organization of the Milwaukeechapter of which he is a past president and member ofthe Executive Committee.

This paper was presented before a meeting of the Mil-waukee Chapter, N. A. C. A.

COPYRIGHTED BY

NATIONAL ASSOCIATION OFCOST ACCOUNTANTS

DECEMBER, 15, 1928

A BANKER'S VIEWS ON BUDGETARY CONTROL

SPEAKING to a group of specialists about their particular spe-cialty is not the most enviable task in the world, and yet itseems to me that this is the task which has been set for me thisevening. The only saving feature on this occasion is the fact thatI am to be permitted to give the banker's viewpoint on the subjectassigned —otherwise I might hesitate to discuss financial creditsbefore this gathering.

It is rather difficult to explain by concrete example just what theviewpoint of the banker is regarding credits, for the reason thatno two credit cases are more alike than are two individuals. Whilein two given cases the balance sheets may in some respects be sim-ilar, yet the basic foundations and supporting facts are bound tobe dissimilar.

Regardless of any and all theoretical formulas, we must concedethat our entire credit structure is based upon one definite proposi-tion and that is confidence in our fellow -man.

It seems to me that we can sum up briefly, but explicitly andcorrectly, the entire theory upon which all credit is founded in thefollowing words:

z. Confidence in man's character and integrity.2. Confidence in man's resources and ability to pay.3. Confidence in the stability of the locality in which he con-

ducts his business.

Credit is the greatest asset from an economic standpoint in theworld, because it forms the basic foundation upon which all com-mercial, industrial and financial activity is carried on. On the otherhand, it is a very sensitive proposition which can be more easilydestroyed than created. Someone has compared injured credit toa broken piece of beautiful porcelain. You may put it togetheragain and it may seem as good as of old, but the cracks are thereand you cannot forget that it was broken.

Credit is the correlative of capital. It liquifies capital and is inturn dependent upon capital for its redemption. A peculiarity tobe found in the extension of credits is the fact that the mere grant -

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ing of credit in itself increases the demand for credits. This istrue all along the line, from the banker to the manufacturer andon to the distributor.

Every credit transaction is supposed in theory to be based upona cash equivalent. The only security, however, that is absolutelyliquid is cash itself, and that is the reason why money is basedupon the unchanging standard of gold as a measure of the valueof wealth. It is upon this standard as a foundation that we mustat all times erect a superstructure for credit. It is vitally import-ant, therefore, that all business concerns keep their affairs in suchshape that the cash standard of value, as measured against assets,will always find ample evidence of ability to convert these assetsreadily into cash to pay debts, and this is the fact that the bankermust keep in mind when considering a credit application.

Credit making is an estimate or opinion of future commercialconditions and of the ability and intention of business men to carryout their business contracts. The man who buys on credit is bas-ing his success upon the anticipation of future profits. Therefore,the man who sells credit, as does the banker, must have the visionto foresee and analyze carefully and correctly the future businessconditions which are to bring these profits.

How are we to determine the future conditions? We have butone way to judge the future and that is by analyzing the past. Thependulum swings both ways. This rule is especially applicable toindustrial activities because an industrial operation of today mayhave seemed improbable several years ago. Therefore, in orderfor the banker to make a proper decision regarding credits, it isabsolutely necessary that he make a careful and thorough analysisof current economic conditions effecting the particular concernwhich is asking for credit.

The greatest danger existing today in our complex system offinance, and one with which the banker has to deal, is the dangerof over - extension of credit. This danger applies equally to com-mercial and to manufacturing concerns. There is but one safe-guard with which this danger can be avoided and that is by theexercise of conservation. That is why a bank forms the most im-portant link in the chain of credits as it is the one institution whichcan apply brakes of conservation more effectively than any otherorganization.

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Recognizing the bank as a quasi - public institution, however, wemust concede that it has a two -fold duty to perform. It must beready to extend to the public, so far as is feasible and consistentwith good banking, that credit service to which the public is en-titled. On the other hand, as it is dealing in a large part with thefunds of its depositors and therefore acting to a certain extent inthe capacity of a trustee, it is duty bound to exercise greater carein the extension of credits than any other institution.

This naturally brings us to the question, What information mustthe banker have in order that he may exercise due caution and atthe same time use good judgment when considering the applica-tion of a worthy client?

Generally speaking, it is necessary that the applicant producefacts and figures which will conclusively show:

i. That his business has sufficient capital for real capital pur-

poses.a. That the concern is making real progress.g. That income exceeds outgo.4. And last but not least, that conditions warrant his belief

that future profits will take care of the requested loanwhen due.

Experience has taught the banker that the safest and most ac-curate information regarding a proposed credit extension is to befound in the report of examination of an independent and reliableaccountant.

Regarding the usual balance sheet and supporting facts of anaccountant's report, I am going to offer these observations.

It has been my experience that many reports go into great de-tail regarding certain items on the balance sheet while they slideover other items which to the banker are items of real moment.

For example, most reports go into great detail in explaining theprofit and loss account, but they fail to be explicit and thoroughin their description of items making up bills receivable and mer-chandise inventory. To my mind these two are two of the mostimportant items on the balance sheet. The report should alwaysshow in detail what portion of bills receivable is represented bycurrent bills, for merchandise sold customers, not yet due, andwhat portion represents renewals, past due or disputed claims, and

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overdrawn accounts of officers. Also, whether or not any portionhas been pledged as security for indebtedness, and if so, whetherthis is a regular practice.

The item, merchandise inventory, should be explained, particu-larly in reference to the method pursued in arriving at book value,whether it represents cost or market, and if cost, whether this in-cludes selling and administrative costs or merely manufacturingcost. This item should be further explained in reference to thecharacter of goods. The actual amount carried over and the pos-sibilities and practices regarding turn-over.

In the same manner any unusual items, such as deposits of offi-cers, relatives and friends, should be gone into thoroughly, for thepurpose of showing whether or not such deposits are temporaryand subject to demand withdrawal, or whether they are of apermanent nature, as knowledge of this character has an importantbearing upon the condition of the company.

There is just one other point which I wish to stress in this con-nection and that is that accountants in many cases fail to appre-ciate the importance of setting up real facts regarding the recordand experience of the personnel of the organization. I recognizethat naturally there are certain limitations beyond which the ac-countant cannot go in this respect, but on the other hand it is quitepossible to paint a natural and feasible picture of the executives ina manner which would be helpful to the banker.

All of this information when properly digested should form apicture of the true condition of the concern up to the date of the

report.But there is, it seems to me, another step of great importance

which has not as yet been covered. We agreed that credit makingwas based upon future commercial conditions, and that is wherethe real importance of budgetary control comes in.

A well conceived budget .should forecast with great accuracythe results which are to be expected in the future, so far as theearnings and expenses of the particular institution are concerned.

The budget when functioning properly prevents over - expansionand the piling up of inventories beyond the demands of the busi-ness. It furnishes the executives with definite plans wherebyactual performance can be checked against future estimates. It

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acts as a barometer and provides set danger signals which warnagainst what is going to happen if certain policies are pursued.

The budget plan of operation when properly executed takes duecare of the two most important items of finance, namely, Incomeand Expense, and quickly determines with real accuracy whetherthe concern is going backward or forward.

The budget being founded upon accurate records of past per-formances makes it possible to forecast future progress and thatis the knowledge which the banker must have if he is to intelli-gently pass judgment upon credits which are to be used for futureoperations.

Budget preparation and use is a modern development of ac-countancy, the value of which is not as yet clearly understood orfully appreciated by the present day business men. History willshow that from the time of Adam down to today the human racehas been, and is, prone to accept anything new. Budgetary controlto a certain extent is new; therefore, we must wait patiently forits adoption by progressive executives who have the vision toappreciate its real worth.

To sum up, I would leave this thought with you gentlemen.Teach your clients to be frank and honest with their bankers.Show them how important it is that they furnish their bankersnot only with facts and figures representing the present conditionand past history of their companies, but also the importance froma credit standpoint of adopting budget systems which will forecastwith real accuracy the future conditions which they must meet.The more assistance they give their bankers the greater the coop-eration which their bankers will give them. I am a firm believerin budgetary control as a future necessity for the business manwho expects credit accommodation.

THE BUDGET AS A BUSINESS COMPASS

THERE is probably no subject receiving as much attention inall branches of modern business life as the budget. The rea-son for this, is, of course, obvious. The world has just passedthrough a cataclysm affecting every scale of life and every lineof human endeavor with the result that it has become necessary

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for all persons or groups of persons to plan as to how they aregoing to meet their future needs if they are to survive in theirstruggle for existence. The enormous expenditures caused by thewar have compelled governments to make strenuous efforts toplace themselves in positions to meet expenses with available rev-enues so as not to cripple their citizenry. The most efficient in-strument which has been developed thus far to aid in such a situa-tion is the budget.

Two questions may be asked —How did budgeting arise andwhat is budgeting? Budgeting was first devised by governmentalorganizations as a formal method of controlling governmental ex-penditures. The derivation of the word is very interesting. Itcomes from a French word meaning a "bag." No doubt this wordwas coined by the English because the Chancellor of the Exchequerof the English Cabinet who was responsible for proposing thefinancial program, appeared before Parliament with all of hispapers in a bag or pack. As to what budgeting is, we will let oneof the authorities on budgets and budget making in this country,Mr. Henry Bruere, Vice President of the Metropolitan Life In-surance Co. of New York City, tell us. Mr..Bruere, at a recentmeeting of the American Management Association, had this tosay about budgeting.

"What is budgeting? Is it control over expenditures? It i spartly that, but control over expenditures can be had without bud-geting. What is budgeting? Is it forecasting operations andrevenues and planning production, credit and sales programs ac-cordingly? These are involved in budgeting, but forecasts andplanning are only the preliminary to budgeting. What is budget-ing? Is it recognizing the need for economy and forethought inadvance of actual performance? That is a part of budgeting. Butevery business man since Benjamin Franklin has, to a greater orless degree, followed those principles in the management of hisbusiness.

"Budgeting is more than all these things. Budgeting is a methodfor combining the co- ordinated intelligence of an entire organiza-tion into a plan of action based upon records of past performanceand governed by a rational judgment of factors that will influencethe course of the business in the future. It is not control merely.It is not forecasting merely. It is an exacting and rigorous analysis

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of the past and the probable and desired future expenditures witha view to substituting considered intention for opportunism inmanagement.

"If this definition does not seem inclusive, I can only say thatthe budget has this great advantage. It is neither creed, canonor system. It is not a cult and it has no prophets. For any insti-tution or man, budgeting is what you care to make it, providedonly that you are a realist and are willing to undergo the pain ofthinking conclusively regarding your business in terms of obtain-able results instead of hopeful expectations.

"What is the scope of budgeting? Obviously, it applies to capitalexpenditures. It applies to sales. It is a necessary element ofany sort of intelligent purchasing, though unfortunately it is oftendisregarded in buying materials and supplies. The budget is in-

volved in every manufacturing or mining project. It is expedientto budget personnel and labor requirements. It is the means ofjudicious financial administration. Every good business uses it,consciously or otherwise. The only part of the business organismto which the budget cannot apply is to the intelligence of business.One cannot or should not think all the year's supply of ideas andplans at the time the budget is prepared."

It will be noted that this definition of Mr. Bruere's covers bud-geting in its widest sense, stressing the point that budgeting is anassembling of all the facts about a given problem in such a wayas to enable the management to determine upon a program to dosomething which may be measured in terms of work done or incost of doing a specified amount of work. In any event, the bud-get program sets up a standard of measurement by which actualperformance can be measured.

As stated above, budgets were first formally developed in gov-ernmental organizations. The need for the budget in these or-ganizations arose from the fact that taxation burdens had becomeirksome and consequently it was necessary to control expensesin advance if taxes were to be kept down to a minimum. In theircrudest forms, governmental budgets were amounts of money setaside by appropriating bodies for specific purposes. Our nationalgovernment up to very recent years, operated under this form ofbudgets. Such budgets, to be sure, were very crude methods ofcontrol and as governmental organizations grew more and more

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complex and governmental functions became more widely spread,the controls necessarily grew looser, expenses mounted and the taxburden became so oppressive that the cost of government becamea subject of much concern on the part of the average citizen.Curiously enough, those governmental organizations which wereclosest to the people, first adopted a budget system as a methodfor curbing expenditures to appease the unrest of the tax payer.Thus it was that municipalities adopted budget systems beforestates and the national government in this country. General gov-ernment taxation problems in foreign countries had long been mat-ters of concern with the result that foreign governments generallyadopted the budget system before our own. It was the world warwhich precipitated a situation which compelled our own govern-ment to adopt measures to conserve its expenditures, thereby re-sulting in a budget system.

The main purpose of governmental budgets is to control theexpenditure of funds appropriated for special purposes or depart-ments. Inasmuch as there is no element of profit concerned ingovernmental operations, the necessity for controlling the volumeof work done by governmental departments has not been stressed,thereby resulting in a failure on the part of public officials to adopta work program or production budget plan. There are isolatedinstances where governmental organizations have developed workprogram budgets for some of their departments. The city man-ager form of municipal government is now working along thelines of developing work program budgets for the guidance oftheir departments. Such budgets will result in greater economiesfor the average citizen.

Private business has gone through the same development inbudget making as public. The management of each business un-consciously budgets the operations of its business when it estimateswhat things are going to cost. Mr. McKinsey in his excellentbook "Budgetary Control' tells of an experience he had visitingthe merchandise manager of a large retail store several years ago.This executive derided the idea of preparing a sales estimate, stat-ing that this was an academic question which he did not care todiscuss. Mr. McKinsey inquired if he permitted his buyers to usetheir own judgment in deciding on quantities of goods to be pur-chased. The merchandise manager replied that buyers could not

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be permitted to buy what they desired for the reason that theywould bankrupt the firm in six months. Mr. McKinsey then in-quired how buyer's purchases were controlled and was informedthat the executives of the firm first obtained the average sales forthe past three years and added to this the percentage of increasethey expect the next year, and with this as a basis determined thepurchases necessary to meet those plans. This was the amountwhich the buyers were permitted to purchase. After some fewminutes further discussion with the merchandise manager, Mr.McKinsey had proven that this department store was already op-erating on a budget system. This instance is cited merely to showthat those businesses which have attained any degree of successhave been consciously or unconsciously operating on some sort ofa budget plan.

The general method for developing a budget is to take the pastexperience of the business over a definite period of time and withthat as a basis, determine what the average experience, operatingunder exactly similar conditions, would be and decide upon whatpercentage of increase or decrease might be expected in the comingyear depending upon economic conditions. These percentages ap-plied to the operating statement of the current year, form the basisfor the budget for the coming year. This budget to be completemust cover the entire field of the business. The logical point fromwhich to start is the forecast of the operating statement for thecoming year, thereby determining what the profits should be if theoperations as forecasted are followed out. This necessitates in thecase of a trading corporation, the determining of the volume ofsales for the coming year, basing this estimate upon past experi-ence and the estimated increase or decrease, depending upon prob-able economic conditions in the coming year. After making theestimate of sales, it is necessary to determine the cost of the goodssold. Here again, it will be necessary to take into considerationthe past experience and probable trend of the market if goods areto be purchased direct for sale, or the trend of the material marketfor goods that are to be manufactured for sale. It will also benecessary to forecast the Shipping, Selling and Administrative ex-penses to carry out such a sales program. Here again, recoursewill be had to past experience. Changes in salary costs and costof supplies will need to be reflected in the estimated costs for the

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future period. The basic part of the budget is now completed andready for adoption, but before final adoption, it will be necessaryfor the management to agree upon a production program, in thecase of manufacturing corporations, which will result in the goodsbeing produced in quantities and kinds necessary to carry out thesales program. The adoption of such program will necessitatesubdividing all manufacturing costs into the labor, material andoverhead charges necessary to carry out the production program.

The production program in turn, calls for the adoption of a pur-chasing program which may be subdivided into materials, oper-ating supplies and equipment requirements. The purchasing de-partment will need to see that materials in the proper quantitiesand kinds are available at the proper time to carry out the manu-facturing program. The purchasing department must also see thatthe necessary additional equipment is installed to carry out theproduction program. It must also see that operating supplies areavailable to keep the equipment at a maximum of efficiency.

After these budgets are prepared, the treasurer of the companyis in a position to prepare a financial program which will guaranteethat funds will be available in the amounts needed and at the timeneeded to carry out the program adopted by the management. Thisinvolves taking into consideration first the sources of the fundsand the amounts available from each source. If it is found thatcurrent funds are not available in sufficiently large quantities, itwill be possible to survey sources from which funds may be bor-rowed to supply the deficiency. All of these matters can be defi-nitely planned in advance so that the entire machinery of the busi-ness will run smoothly. After these separate programs have beenadopted, it will be possible then for the management to have anestimated balance sheet prepared which should reflect quite ac-curately, the condition of the business at any particular time dur-ing the budgetary period under consideration.

No discussion of budgets would be complete unless some atten-tion is paid to the machinery required to work the plan. In smallorganizations, the active heads or owners will no doubt work upthe budget. In larger businesses, there will be some official or ex-ecutive who will be designated as the budget executive to draw upthe budget which will be submitted to the management for adop-tion. There are two widely separated methods of making up the

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budget estimates. Under the one these estimates are made up andimposed on the subordinate executives; under the other, the sub-ordinate executives prepare the estimates and submit them to themanagement for their consideration. Which one of these plans isthe better is a moot question although the psychology of modernmanagement leans to the latter.

The budget, if it is to fulfill its purpose, must be accompaniedby a system of current reports comparing actual experience withbudget estimates. This necessitates up -to- the - minute records show-ing actual costs and actual production figures available soon afterthe expiration of any budgetary period in order that any markedvariations from estimates may be immediately corrected. Hereagain this compels those who are responsible for these reports toadopt a time schedule for making reports. Such a practice alwaysresults in increased efficiency in getting out reports through closersupervision of work.

In conclusion from a number of years' experience both withpublic and private budget making, we can testify there is no betterinstrument thus far devised to aid management, whether public orprivate, to steer its course through the many shoals and quick-sands of the industrial sea. It will unerringly point out the truecourse to sail; it will call attention to the calms which mean inac-tion and to the stormy seas which may threaten to engulf the busi-ness ship and hurl it upon the rocks. That mariner who puts histrust in this business compass will be the one who will most cer-tainly bring his craft into the calm haven.

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VoL VIINo. 9 —The Preparation and Administration of Budgets, Chester E. WeyerNo. 10 —Brush Manufacturing Costs, Norman H. BroadheadNo. 11— Inventory Accounts and the General Accountant, Arpl=ad FeyNo. 13— Forecast for 1926, Carleton B. HutchingsNo. 14— Engineering Costing and Works Accountancy —Its Objects and

Necessity, Roland DunkerleyNo. 17 —Cost and Depreciation, Carl G. lensesNo. 20— Distributing Administration Costs, Leon E. VannoisNo. 21 —Use of Standard Labor Costs in the Manufacture of Men's Clothing,

E. C. RobertsonNo. 22— Budgets and Pre - Determination of Coats, William S. KempNo. 23— Distribution of Burden, Grant L. BellNo. 24 —Cost Accounting Reports for Executives, Edgar Swick

Vol. VIIINo. 1— Accounting for Material, George H. FrieselNo. 2 —Cost Accounting For Paper Mills, Charles W. GouldNo. 3— Preparation and Administration of the Budget, H. S. OwenNo. 4 —Cost Accounting and Budgetary Practice, F. Clair BennettNo. 5 --The Clay Products Industry, Richard C. TurnerNo. 6— Accounting Control of Materials Purchased, Paul M. AtkinsNo. 7— Analysis of Selling Costa and Proper Basis of Salesmen's Compensation,

Horace G. CrockettNo. 8 —Crop and Field Cost Accounting on Hawaii's Sugar Plantations, Rudolph

MullerNo. 9— Financial Control Policies of General Motors Corporation and Their

Relationship to Cost Accounting, Albert BradleyNo. 10— Planning for the Physical Inventory, Stanley G. H. FitchNo. 13 —Cost Accounting as a Basis for Shaping Operating Policy, A. W. BassNo. 17 —Labor Classification and Payroll Analysis, Carleton F. BrownNo. 18—Professional Co- operation Between Accountants and Attorneys, Harold

Dudley GreeleyNo. 20— Accounting Information for the Executive, Ernest F. DuBrulNo. 21— Materials in Standard Costs, Williana L. ChurchillNo. 22— Accounting for Capital Assets, K. C. RichmondNo. 24— "Do We Need Calendar Reform ?" By George Eastman

Vol. IXNo. 1— Measures of Business Efficiency, Clyde MorganNo. 2 —The Profit Element, James H. Rand, Jr.No. 4— Budget of Financial Operations, F. H. CorreganNo. 5—An Adaptation of Mechanical Accounting Control, R. G. RegnerNo. 6— Budgeting Control and Standard Costs in the Newsprint Paper Industry,

G. Andrew WareNo. 10 —Forge Shop Production —Cost Accounting. Frank S. HatchNo. II.—Co- ordinating the Factory and General Accounting to Insure Prompt

Monthly Closing. John E. HornNo. 12. —The Analysis and Distribution of Sales Distributional Costs, James H.

BarrettNo. 14. —Waste and Its Elimination, Paul E. Holden and William S. FordNo. 15.— Depreciation As Applied to Public Utilities, W. B. S. WinansNo. 17. —Public Utility Economics, Theodore J. GraysonNo. 18.— Unintentional Falsification of Accounts, Ernest F. DuBrul.No. 19.— European Manufacturing Methods and Costs, Chas. E. Bedaux.No. 20.— Tanning and Leather Products Costs, F. E. BarthNo. 21— Experiences with Budgets to Aid Management, Lester F. BlakeNo. 23.— Foundry Costs, Albert E. GroverNo. 24.— Depreciation Accounting in the Machine Tool Industry, Thomas B.

FrankVol. X

No. 1 —The Railways and Cost Accounting, Clinton F. BalchNo. 2— Branch House Accounting, Charles W. GleasonNo. 3 — "New Technique in Selling and Administrative Cost Accounting,"

Albert A. RoseNo. 4 —Keys to Internal Control of Costs, E. S. La RoseNo. 5 —Sales Cost Accounting, Henry S. DennisonNo. 6 —Use and Occupancy Insurance.No. 7— Inventory Planning, Taking and Valuation, W. D. BonthronNo. 8 —Bank Credit and Budgetary Control, Michael H. Cahill and John P.

PutnamCopies of the above publications which are not out of print may be obtained from the office

of the secretar7 of the Association, 26 West 44th Street, New York City, at the price of 75 centsi m W97.