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The article presents the argument that greater equality in the distribution of costs and rewards of development is demanded by the value system of the Filipino and by the development process itself. Important steps toward equality would be agrarian reform, educational reform, and tax reform. For these to be carried out there is need for organized pressure from below. There is need also for strong and efficient government, whether it will in the long run be democratic depends on the attention given to genuine education and human development at the broad base of society. The aspirations of the great majority of the people for a higher standard of material welfare are evident and reflected in many surveys. Per capita income figures demonstrate that the Philippines is a poor nation and that a reasonable level of material welfare cannot be provided by redistribution alone Economic development and accelerated economic development are absolutely necessary if the Philippines is to meet the rising demands of its constantly increasing population.

Professor Littleton's paper seems especially timely in view of the present day ideas accounting as a record of original prices and widely fluctuating prices as a normal pattern-there seems to have come the conviction that accounting for outlay cost can no longer be considered a dependable guide to those who look to accounts for essential information. And the conclusion then follows that account keeping or financial statement practice must be modified to suit the new background. The assumption that problems of income distribution dividends, income tax, speculative security profits are of more importance than problems of the measurement of the income generated by the creation of new wealth or the rendering of acceptable services. The assumption that accounting has a more important obligation to supply data useful in managerial pricing policy than it has in facilitating the comparison of past input of services costs with past output of services revenues. The assumption that accounts and statements are merely tabulations of statistical data related to social income and as such are open to any desired manipulations by statistical methodology, such as weighting by index numbers, reduction to averages, elimination of seasonal variations, etc.

The article presents a conference paper in response to another paper published in this same issue titled "Cost of the Marshall Plan to the United States," by Seymour E. Harris. The author notes that Harris may not have had the advantage of reading the 240 page report containing the U.S. President Harry Truman's proposals for European recovery. The author considers the role of financial measures in economic recovery, stabilization loans, and the validity of the cost estimates of the Plan.

The article presents a statistical analysis of the relation between cost and price. Marginal costs are the costs of marginal producers who may at any time leave the industry while modal costs are assumed to be the costs of the representative producers. To accurately determine the marginal position on the cost curve, it would be necessary to take cost groups for a number of industries and to find at what point along this curve normal competitive conditions caused price to fall. In this article, the costs and prices of book paper, newsprint paper, canned salmon, sugar beets and copper are analyzed.

This paper discusses the following model: (i) Arriving customers are accepted in the system in a time interval [t[sub0], t'] and are rejected with compensation after time t'; (ii) the server runs at the cost rate r[sub0] in a time interval [t[sub0], T], t[sub0]≤t' ≤ T, and runs at the increased cost rate r[sub1](r[sub1] > r[sub0]) after the closing time T, until the system becomes empty after time t'. The time t' is called the rejection time. The paper finds the optimal rejection time, that is, the rejection time that minimizes the expected total cost. It can be shown that in certain cases the optimal rejection time can be determined by a nonlinear equation. Numerical examples are given for an M/M/1 queuing system, and the more generalized model is briefly discussed. [ABSTRACT FROM AUTHOR]

In this article, the author presents his views on the research paper by Shyam Sunder which considers accounting method changes and stock prices. According to the author, Sunder's paper refers to both problems of measurement and empirical evidence concerning the relationship between accounting changes and stock prices. Sunder implies, by his criticism of alternative approaches to studying this relationship, that the capital market equilibrium model represents the most appropriate methodology for the purposes of the three user groups, the financial accounting policy makers, the corporate managers, and the investors. This model provides accurate information to policy makers and allows individual investors to make informed investment decisions.

A conference paper discussing the cost of the Marshall Plan to the U.S. is presented. The author notes the estimates given by the Committee on European Economic Cooperation (CEEC) for the Economic Recovery Program, which claim that the cost to the U.S. would be $22.4 billion. The author expresses concern that this estimate may be low. The author considers income and payments for European recovery, the Marshall Plan and inflation, inflation and commodity markets, and U.S. budgetary problems.

This article presents comments of the author on the paper by Peter E. Firmin,"University Cost Structure and Behavior: An Empirical Study," related to the examination of the university cost structure and behavior in the United States. The author states that ever since the close of World War II the demands placed upon the system of higher education have grown at a quickly increasing rate. He explains that for the most part both the administration and the faculty have been known to continue what they have done in the past, using the same techniques, only on a larger scale.

The purpose of this paper is to illustrate an application of linear programming to the problem of allocation of aircraft to routes in order to maximize expected profits when there is uncertain customer demand. The approach is intuitive; the theoretical basis of this work is found in an earlier study. The allocations are compared with those obtained under the usual procedure of assuming a fixed demand equal to the expected value. The computational procedure is similar to the fixed demand case, with only slightly more computational effort required. This paper is intended both for readers interested in routing (and analogous resource allocation) problems and for those interested in studying an example of an application of linear programming under uncertainty. [ABSTRACT FROM AUTHOR]

The article presents the use of Laspeyres indexes, proposed by German economist Étienne Laspeyres, in calculating variances in direct costs and in production and sales. The Laspeyres indexes will be used throughout for calculating variances in direct costs and in production and sales. It should be noted that the conventional price variance includes the joint effect due to changes in quantities. Variance analysis in cost accounting has been given an economic meaning in this paper. By using Laspeyres indexes the meaning of variance analysis in direct costs and in production and sales has been elucidated. The quantity variance is often split into two components: mix and volume variances. The price and quantity variances are found to be multiplication of the total budget by the respective average change. Further, a way to allocate the joint variance between price and quantity variances is suggested. The new interpretation of variance analysis, as developed in this paper, has an additional advantages that it is more informative to managers and it is easier to compute.

This paper presents a formal model of the one-machine job-shop scheduling problem with variable capacity. Its primary interest focuses on the trade-off between overtime and detailed scheduling costs. The scheduling problem considered is minimizing the sum of weighted tardiness and weighted flow-time costs for a given capacity plan (i.e., a given overtime plan). The paper generalizes sequence-theory results to this case where possible, analyzes various lower-bounding structures for the problem, outlines a preliminary branch-and-bound algorithm, and illustrates several interesting features of the algorithm and bounding structures by an example. Extensions of the results to more complex environments are discussed. [ABSTRACT FROM AUTHOR]

This article discusses the implications of the consumer's saving decision for the measurement of the effect of price changes on a consumer who saves. The conventional economic theory of price or cost of living index numbers defines a true price index (TPI) as the ratio of two volumes of expenditure which are the minimum needed by a consumer to attain a reference level of utility in two price situations. When the two price situations are designated 0 and 1, respectively, the reference level of utility is generally chosen to be that attained by the consumer in situation 0 or in situation 1. In this paper a TPI has been defined for a consumer who saves in order to maximize a simple two-period intertemporal utility function. There are several extensions of this analysis which will be dealt with in subsequent paper. For example, it will examine how the consumer's desire for a terminal stock of savings in period 1 affects the analysis. Also the model will be extended beyond two periods and a TPI will be defined to measure price changes between different periods. In this analysis the consumer's revisions of his price expectations will play an important role.

The ability of a given cargo aircraft and cargo-handling system combination to perform a specified task can be influenced by a large number of factors. This paper identifies the more important of these factors and presents a quantitative criterion for measuring the relative efficiency of combined air cargo systems of this type. Although developed for the case of only two air-freight terminals, this criterion can be useful for situations involving many terminals. [ABSTRACT FROM AUTHOR]

Risk analysts frequently encounter functional relationships concerning costs and revenue which can be expressed as standard algebraic forms. The forms are quadratic, product, or mixed functions of variables which are normally distributed and not necessarily statistically independent. (The ratio functions will hopefully be the subject of a paper that follows this.) Generally, interest focuses on the construction of 2σ or 3σ probability intervals for each form. Since probability distributions of these forms, as far as the risk analyst is concerned, are neither tabled nor easily derived, the desired probability intervals are not easily constructed. This paper shows through analysis, review of previous research, and simulation, that under ordinary conditions the probability distribution of these forms can be approximated by more population distributions (e.g., gamma or normal). The paper suggests rules of thumb that allow one to make probability statements about each form without recourse to costly simulation. An application to a financial planning model for an industrial firm augments the theoretical discussion. [ABSTRACT FROM AUTHOR]

The paper provides estimates of (1) research expenditures on poliomyelitis, (2) scveral forms of productivity benefits from applying the knowledge generated by the research, and (3) the costs of applying that knowledge. Internal rates of return are computed under a variety of assumptions, with results generally between 4 and 14 percent. The inter-relatedness of research with procedures for applying the research findings is investigated; in the case of polio, the rate of return on research is found to be heavily influenced by the costs of application. Finally, a discussion is included of the likely allocative efficiency of private-market behavior when a collective-consumption good, such as research knowledge, requires the use of an individual-consumption good, such as vaccination, for its application. This paper examines costs and benefits of a particular medical research program that would generally be regarded as a medical "success"--the research which led to the development of vaccines (Salk and Sabin) against poliomyelitis. No attempt is made to generalize our findings to cination) costs. If there were no vaccination costs, it appears that, ceteris paribus, the internal rate of return on polio research surely would have been satisfactory even by ordinary market standards--for the lowest rate of return shown in table 3 is 11.9 percent. If we disregard the costs of application, an erroneously high rate of return might have been assigned to the research effort alone. This would ignore the fundamental fact that research and its application arc joint inputs to any disease control program. This discussion of application costs grew out of the concern with returns from research, together with recognition of the relationship between research and application. The approach and the data presented here can also be used, however, to estimate the rate of return on programs to apply existing knowledge, taking as given the existence of the required knowledge and ignorin... [ABSTRACT FROM AUTHOR]

This paper discusses the relationship between sales costs and profitability in profit-type R & D organizations. Simple formulas are presented to show the relationships among some of the more important factors which determine profitability and growth. [ABSTRACT FROM AUTHOR]

The article presents comments of the author regarding the paper by Peter E. Firmin, "University Cost Structure and Behavior: An Empirical Study," related to the examination of the university cost structure and behavior in the United States. The author states that the study was conducted to help bring about improved management to higher education and they explain that it was assumed that university administrators had inadequate cost information to efficiently and intelligently carry out their administrative functions.

The article presents summary of articles present at a round table conference on cost functions and their relation to imperfect competition. J.M. Clark, in his paper, expressed that, where one of the conditions of perfect competition is absent (as is always the case) the presence of others may lead to greater rather than less imperfection. Potential competition remains an important factor. So far as imperfect competition is governed by long-run curves of individual demand and cost, these are flatter than commonly represented and the imperfection of competition correspondingly less. As to short-run problem; industry with fluctuating demand requires prices in excess of short-run marginal cost, though still limited by competition. Favorable conditions appear to include a sloping individual-demand curve and some uncertainty whether a reduction of price will be quickly met. Joel Dean's paper presented provisional findings of an investigation designed to determine empirically the patterns of short-run and long run cost behavior of individual enterprises in a variety of industries. Six case studies of short-run cost were summarized.

The article presents information on inventories, production smoothing, and the accelerator. In this note a simple model of production smoothing that does not include "inventory smoothing" is presented and fitted to monthly data for six industries and four cross-section samples for one industry. Paul Darling and Michael Lovell argue that production smoothing does not represent an acceptable substitute to the flexible accelerator. Both hypotheses are consistent with maximizing behavior, and "the choice between the two alternative approaches must be resolved empirically." In choosing such a plan, the firm must balance the costs involved in changing the rate of output against those of inventory investment. If there are no costs of changing the level of output, the firm will produce in each period an amount equal to expected sales in that period. The results presented in this paper indicate that for the samples studied the behavior of inventories is inconsistent with that implied by the accelerator model and can be successfully explained by the production-smoothing hypothesis.

The purpose of this paper is to relate the accumulation and presentation of costs and revenues, both historical and projected, to three basic managerial functions: planning, motivation of employees, and control. Two major problems arise in this connection. First, accounting information must be presented according to the management function which it is to assist. Thus the accountant may find himself confronted with the necessity of compiling cost and revenue data in several different classifications. Secondly, the budgeted figures must be set at the level appropriate to each function: expected costs and revenues for planning, desired goals for motivation, and ideals for control. This problem indicates the use of separate budgets for separate purposes. Both of these problems are discussed in this paper in relation to planning, motivation, and control. Each of the three functions of management discussed requires cost and revenue data compiled and presented according to the purpose for which it is to be used. Correspondingly, each function requires budgets set at different levels of costs and revenues. The planning function is served by a coordinated master budget, which is composed of a number of subsidiary budgets, all set at the level of expected results. Incentives to employee performance indicate the use of fragmentary budgets set at the level of short-range goals. Flexible departmental budgets which compare ideal and incurred costs serve the purpose of control. [ABSTRACT FROM AUTHOR]

Presents a paper on the increased prices of agricultural commodities in 1972 and 1973. Causes for the price increases; Decline in world grain production; Outlook for production and prices for 1973 and 1974; Need for the United States to cooperate with other nations and with international agencies in trying to work out a multilateral approach to increased stability in the world food system.

The article examines the two factors affecting electrical rates. The present paper deals mainly with two fundamental questions: (1) the bearing of the time of consumption upon the rate, and (2) the proper influence of quantity taken upon the rate. While the importance of the load factor constitutes the great peculiarity of the electrical rate situation, quantity discounts constitute the most troublesome practical problem. Quantity taken is perhaps more important than load characteristics as the reason for class rates, even where the latter are ostensibly based on load-factor grounds.

This paper views the location of emergency facilities as a set covering problem with equal costs in the objective. The sets are composed of the potential facility points within a specified time or distance of each demand point. One constraint is written for each demand point requiring 'cover,' and linear programming is applied to solve the covering problem, a singlecut constraint being added as necessary to resolve fractional solutions. [ABSTRACT FROM AUTHOR]

This paper outlines the merits of the recursive regression model in analyzing aircraft-failure and manhour-cost data. The parameters of this model are estimated from maintenance data generated by the entire Boeing B-52 fleet during the period August 1965 to August 1966. Failure rates and manhours of repair are found to be a significant function of the calendar age of the aircraft, the length of the missions flown, the time spent in low-altitude flight, and the technological developments in newer aircraft. The estimated parameters are used to develop a marginal cost analysis that can be used by the decision maker in evaluating his maintenance operation. Although the paper is based on a specific military operation, the method outlined can be used to determine maintenance costs for any large jet aircraft. [ABSTRACT FROM AUTHOR]

This paper studies the optimal operation of an M/G/1 queuing system with removable server and the following cost structure: a holding cost per customer in the system per unit time, a cost per unit time of keeping the server running, and fixed charges for turning the server on or off. The server can be turned on at arrival epochs or off at service-completion epochs. The paper characterizes an optimal policy for the infinite-horizon discounted problem, offers an optimality proof, and presents a computational algorithm. [ABSTRACT FROM AUTHOR]

It is often assumed that an extreme sacrifice in efficiency is made when utility or multi-purpose weapons systems are substituted for systems specifically designed to meet a particular requirement. In this paper the authors attempt to quantify the expected differences in the costs of providing a capability with either specialized or utility type aircraft to meet aircraft requirements in a counterinsurgency environment, where requirements are either uncertain or are known to change from time to time. Because little is known about the actual costs of aircraft operation in a primitive logistics environment, particularly the question of the difference in logistics costs as a result of operating more than one type of aircraft rather than only one type of aircraft, the analysis deals solely with average costs. Unless significant savings are likely to be achieved by providing a mix of specialized aircraft for a given level of operational requirements, an a priori case is considered made for the procurement of the utility aircraft. [ABSTRACT FROM AUTHOR]

The article presents a discussion by the author on two papers by Richard B. Heflebower and Richard Ruggles about price and market theory. According to the author Ruggles has given a lucid appraisal of the limitation to orthodox value theory concepts for purposes of empirical analysis while Heflebower has pointed toward an inductive theory derived from observations on the real world. Each is an appropriate complement to the other. Unfortunately, throughout his analysis Heflebower mostly disregards the analytical tools of orthodox value theory and appears to rely heavily upon something bearing close resemblance to the principle of cost-plus pricing. Heflebower's analysis must be appraised against the objective sought to attain and the principal conclusion to which it led. Ruggles' paper raises significant questions about the very heart of economic theory, namely, value theory and its usefulness. Value theory, historically considered, has been concerned with the relative importance of goods and services.

The central problem in the theory of price formation under conditions of oligopoly is the problem of how the "implicit bargain" among the oligopolistic rivals is made. The classical theories of oligopoly failed to recognize this as a problem. This omission was the essential weak point in all these theories, which tried to derive price results from market demand curves and the cost conditions of the individual producer alone, a weakness which has been elegantly exposed in the historical review of these theories. The bulk of researcher W.J. Feliner's study is devoted to the analysis of all factors which condition the implicit bargain. They are examined in sequence and their total effect on the outcome in the market is considered. But Feilner does not present an explicit mechanism which shows how particular values of the relevant factors interact to determine a particular bargain, or quasi agreement, among the oligopolistic rivals. It is the purpose of this paper to present, schematically and in simple form, outlines of such a mechanism. It is appropriate to emphasize, at the outset of this paper, the limited claims that are advanced for the scheme here presented, it is only a mechanism, it does not, in itself, pretend to add much in a substantive way to insights into the behavior of oligopolists provided by Feilner's analysis, but only to organize some of them into a more wieldy formal apparatus which can be applied, perhaps, to other problems than the extremely simplified schematic one examined in what

The purpose of this section is to explain the relation of supply and demand forces to others operative in the process of price determination. To do this, it is necessary to indicate briefly why the absence of pure competition does not make supply and demand irrelevant to price determination. In recent years a number of writers have, in various connections, argued that the "homely truths" of Marshallian economics have been unduly obscured by the glitter of the elegant analytical creations of the past two decades. It is contended, in effect, that despite the tempting equations and undulating curves of the "young models," they are rather unfruitful in comparison with those whom they displaced in our analytical affections. Various expounders of "old truths" have paid but little attention to one another and have, at a times, been a bit cryptic. The author attempts to show both, attractions and the blemishes of such old friends as supply and demand. The spirit of the paper is, quite neoclassical. At the end of the paper the author discusses "cost theory" of value.

In this paper a solution to the generalized transportation problem taking nonlinear costs is given For the sake of concreteness the problem is discussed in a production and marketing context, though by suitable interpretations it can cover a very wide range of problems The solution procedure is an iterative method wherein a feasible solution is obtained at each stage, and the value of the criterion function is improved in going from one stage to another [ABSTRACT FROM AUTHOR]

Sampling errors are generally a function of two factors the time spent making an observation, and the total number of observations In addition, if sampling error costs are not symmetrically distributed about the true value, there is a problem as to whether the sampling mean should be used as a basis for making a decision, or if a biased estimate should be used A general model is developed in this paper for the total expected cost of a sampling procedure as a function of the sample size, observation time per sample unit, and the use of a biased estimate The general model is then applied to a specific situation to illustrate the application of the model A method is also given for evaluating the observational variance as a function of observation time [ABSTRACT FROM AUTHOR]

This paper is concerned with achieving reliable communications at minimum cost It studies a means of accomplishing this in the form of a decision-feedback system. In this system binary signals are transmitted and three decisions are permitted at the receiver. (1) the decision to record the presence of a signal, (2) the decision to record the absence of a signal, and (3) the decision to withhold recording a statement about the signal. Because of noise, the first decision may result in a false alarm and the second in a miss. By withholding judgment in doubtful cases, the risk of a wrong decision may be reduced providing two conditions are met. (1) natural (i e , language) or artificial (i e , coding) constraints can be utilized within the message to interpret doubtful observations and/or (2) the transmitter can be required to repeat the signal corresponding to the doubtful observation. The latter is the method of decision feedback. The objectives of this paper are two-fold. (1) to develop a theory of decision-feedback systems by means of which the optimum conditions of operation in the least cost sense can be specified and (2) to demonstrate that the method of artificial constraints for interpreting doubtful observations is less efficient in its use of the fundamental communication cost parameters, power, bandwidth, and time than decision feedback. [ABSTRACT FROM AUTHOR]

The survey research interviewer and the job she does should be of particular interest to social scientists. In the first place, the interviewer is the chief collector of the raw data that are used in social analysis. The interviewer's work influences both the quality and the cost of social research. Researcher Herbert Hyman and others of the National Opinion Research Center staff have discussed in detail the effects of interviewers on the interviewing situation. Nevertheless, cost data have not been generally available, though they have become even more necessary as survey costs have risen precipitously over the past two decades, largely due to increases in interviewing costs. Before costs can be reduced, it is necessary to recognize how they originate. This is the first aim of the present paper. Second, the occupational role of the interviewer is of intrinsic interest in itself. Interviewers spend most of their time in the field under very little supervision. In this respect, they are similar to salesmen, social workers and public health nurses. The pay method for interviewers differs from that of the other occupations, since interviewers are paid on an hourly basis while the others work for either a fixed salary or a commission.

This paper reports on an experiment involving the use of ten different postage stamp and money inducements to stimulate the return of questionnaires mailed to a sample of the nursing profession. A follow-up letter was found just as effective as more expensive and complicated arrangements. The findings indicate that previews, pennies, nickels, and dimes had relatively little incentive value. The use of an air mail stamp was moderately effective. Follow-ups, special delivery stamps, and quarters were extremely effective as inducements. There were no statistically significant differences among these three inducement-factors, however, and in view of the much lower cost of the follow-up, the latter must be regarded as the most recommendable procedure. With regard to the applicability of the findings to other types of groups, however, a few considerations are in order.

This paper is concerned with the following problem in network synthesis. Suppose that we are given a network with real-valued capacities on each arc. There is a cost associated with each arc which is proportional to the magnitude of the arc capacity. We wish to determine new arc capacities such that the capacity of each cut in the new network differs from the capacity of the corresponding cut in the original network by a specified constant and such that the total cost is minimized. This problem is shown to be equivalent to solving a minimum cost flow problem on a related network. [ABSTRACT FROM AUTHOR]

In this paper the rate of production is introduced along with lot size analysis and annual volume of output. It is to note that these aspects can be incorporated into a classical short-run long-run framework. Hence one could, under an extremely generous interpretation of the latter, contend that this is what was meant all along. The assumptions needed to salvage conventional monopoly analysis have never to the knowledge of the author been explicitly stated in the literature. The analysis of costs and outputs by pointing out fundamental distinctions between rate of output and volume of output, the rate of production and the total quantity produced in a batch. Two things should be noted concerning the study, namely that nothing specific was done in the way of analyzing the problem explicitly and that here it is proposed to make both the size of order and the rate of change of output explicit determinants rather than one or the other. Early studies in scientific management reveal the sharp distinction between maximizing the rate of output over a particular short time interval and in maximizing daily output. This type of distinction does not seem to have made the transition from business to economic literature.

This paper summarizes the extent and types of coverage of cost accounting topics in the ten CPA exams during 1966-1970 inclusive. Comparisons are made to my earlier study covering the period 1956-1965. [ABSTRACT FROM AUTHOR]

The article presents abstracts of articles about costs and efficiency. They include "Cost-Volume-Profit Analysis in Planning and Control," Home Associations: an Interim Report," and "New Automobile Finance Rates, 1924-62."

This article presents abstracts of several papers about economics published in the March 1965 issue of the journal Schweizerische Zeitschrift Für Volkswirtschaft Und Statistik. In the article Carrying Costs and Transportation Costs As Determinants of the Demand for Cash Balances, Peter Bernholz showed in terms of indifference curves how a household maximizes its utility by holding cash balances to bridge gaps between expenditures and receipts. On the other hand, in the article Two Special Cases of the Theory of Tariffs, using Marshall's reciprocal demand curves the paper analyzes certain special cases of the theory of optimum tariffs.

The article presents report of the membership committee of the American Sociological Society. The lucid report of the executive officer of the Society provides a sharp perspective for the membership committee's activities during the past year and for its task in the year ahead. Inflation of costs combined with the failure of the profession as a whole to share proportionately in an increase of income works in a vicious circle in its effect upon the growth of the Society. During the past year the Society has continued its growth. As of August 20th, the total membership stood at 4,008, having passed the four thousand mark for the first time in an official report. One year ago, in August 1951, the membership of the Society numbered 3,906. There has therefore been a net gain of 102. Thus the rate of expansion reported in 1950 and in 1951 has not been maintained, although the Society has grown about three per cent during the past year. The work of the membership committee during the past year has been subject to at least two limiting conditions.

The article presents discussions by economists on some papers that are published in the May 1, 1970 issue of the journal "American Economic Review." The author states that the central thesis of economist F. Thomas Juster's paper, published in this issue of the journal, is that the contribution, which better quality microdata inputs would make to economic knowledge, more than justifies heavy costs of obtaining them. According to the author, Juster's arguments and evidence are most impressive. The other panelists share this general view and the author also strongly supports this position. On the other hand, given the present utilization of existing data, the author is by no means sure that expensive new collection or elaborate experimentation has as high a payoff as increasing the usability of already existing information. The author points out that much of the rationale for creating a National Data System lies in the argument that the vast statistical resources of the federal government are in fact underutilized. If one adds to this the possibility that the design of information obtained in the administrative process could well be altered to be more useful without increasing its administrative cost or burden to the respondent, potentialities of using data provided by the administrative system are very great indeed.

The article comments on professor Ronald V. Hartley's article on linear programming models of a joint cost problem considered in managerial accounting textbooks. Unfortunately, linear programming models do not readily admit demand functions into their structure. The result is that the optimal production schedule arising from such a model is conditional on a particular set of prices and that the demand function must be accommodated in a separate analysis which Hartley calls a "price-demand analysis." The question is how the effect on profit of such overproduction can be represented in the decision model. Hartley notes another case that cannot be completely accommodated by a linear model. It is the case in which all or part of the excess production will be taken by the market if the price on all units of that product is lowered. This paper recommends reformulation of the joint cost problem as a nonlinear programming problem in which a demand function is given explicit representation. The nonlinear model simultaneously determines the optimal price and output policies, and its application is less likely to lead to confusion and error.