--.._—fl" -‘~‘*“ ~m—_~:; fl ANALYSIS OF IN FIRMS MAI. O? ABSTRACT AN ANALYSIS OF ACCWNTING-TYPE ACTIVITES PERFORMED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING DURABLE GOODS WITH IMPLICATION FOR EVALUATION OF POST-HIGH $110013 TERMINAL ACCOUNTING PROGRAMS by Lawrence Mural Ozzello The purpose of this study was to analyze accounting-type activities performed by technical accountants in order to arrive at a set of evaluative criteria related to job activities that could be employed in appraising the appropriateness of the accounting content in a terminal accounting program of a post-high school educational institution. More specifically this investigation attempted: (1) determine current and projected need for technical accountants, (2) establish a list of accounting-type activities performed by technical accountants, and (3) establish a selected criteria that could be used to assist in the evaluation of accounting content in a teminal accounting program. Procedures mta concerning the current and projected need for technical accountants were obtained by a mail questionnaire frm the administrative officers of the 122 firms manufacturing durable goods in a tri-county area in Michigan. mta were also collected about the pranotability of technical accountants. An interview questionnaire of 250 accounting-type activities was developed from current textbooks and literature and reviewed by a jury — ————_— 4—- pml of cert accounting in activities pe. primal inte: accountants c2 “ Wcal ql '3' 110' access p1‘°"°(1111.8th¢3; uni-III of one in anal Wanted to e by the “Chaim The ““1381: 3‘ Mfomed each by an. of fin The 113 accountant. Rae used to “flat Lawrence rural Gazelle panel ef certified public accountants, accounting supervisors, and accounting instructors. Data concerning these accounting-type activities performed by technical accountants were obtained through personal interviews with ninety-nine randauly selected technical accountants classified by their superiors as: (l) employed full-tine as technical accountants for which some post-high school education was new necessary but for which a baccalaureate degree was not a prerequisite; (2) having been employed as a technical accountant a uni-n of one year; and (3) proactable. An analysis was made of the responses fro! the interviews cuducted to establish a list of accounting-type activities perfomd by the technical accountants in fine manufacturing durable goods. The analysis was made of the proportion of technical accountants that perforned each activity and how often they were performed in total and by size of fire. The list of accounting activities performed by technical accountants was analysed to establish a set of criteria that could be used to assist evaluators in appraising the adequacy of accounting content in a post-high school tersinal accounting program related to the durable goods Innufacturing industry. Four analyses were made on the 250 accounting activities investigated to ascertain a usable out-eff gin—t to determine which activities should be included on such an evaluative criterion list. The four analyses were: (1) proportion pea-fouling each activity, (2) rank order by performance of the activities, ( universality hall size 0 Conclusions The to: “Mina: as t1 mmty are accountants ix cOursea as the these firms: 1' The one in Which t the bookkeepu Lawrence mral Ozselle activities, (3) frequency of performance for each activity, and (h) the universality of performance of each activity by technical accountants in all sins of firm categories. conclusions The following conclusions have been drawn from an analysis of the findings as they related to: firms manufacturing durable goods in the Tri-County area, the accounting activities perfomd by technical accountants in those fines, and post-high school tendnal accounting courses as they relate to the training of technical accountants for these firms: 1. There is an accounting position that can be identified as one in which the activities performed tend to "bridge the gap" between the bookkeeper and the accountant - technical accountant. 2. The position of technical accountant is not cmpletely consistent. Those employed in such a capacity do not perform exactly the same set of activities. 3. There is a great enough need to warrant an educational program in the tri-county area for the training of a siseable number of technical accountants . h. Individuals who undertake an educatibnal program to booms a technical accountant will have, coupled with experience, sufficient training to be pranctable. 5 . A profile of the identifiable accounting-type activities perfornd by technical accountants in tri-county fims manufacturing —_ a —— durable good: content for 1 in-oervicc t: for loch fin: 6. or been consider been considez basically be Ln Lawrence Mural Onsello durable goods is potentially useful as a guide in the detemination of content for terminal accounting courses designed for initial training, in-service training, or up-grading of technical accounting employees for such firms. 6. The technical accountant perfume some activities which have been considered duties of a bookkeeper as well as sale of which have been considered duties of a baccalaureate degree accountant but can basically be considered as a position somewhere in between the two. 7. There appears to be an ever present need to evaluate continually the content and scope of the accounting courses in a terminal accounting program. 8. Accounting-type activities performed by technical accountants in the 'fri-ceunty firms manufacturing durable goods can be arranged into a set of criteria that could be used to assist: (l) in the evaluation of content or scope of the accounting courses in a post-high school terminal accounting program, (2) in evaluation and selection of textbooks for use in terminal accounting courses, and (3) personnel performing a guidance function with those interested in technical accounting. 9. There is a need for terminal accounting instructors to work closely with employers so they will be “on top" of actual or anticipated job market changes in the need for technical accountants and the Job activities performed. AN ANALYSIS OF 111me 0] III I! | ‘llll. ' I'll ll AN'ANALISIS OF ACCOUNTING-TIPE ACTIVITIES PERFORMED BI'TECHNIOAL.ACCOUNTANTS IN'FIRHB.HMNUFICTURING DURABLE GOODS WITH IMPLICATIONB FOR EVALUATION OF POST-HIGH SCHOOL TEREINAL.ACOOUNTINU PROGRAMS by Lawrence Mural Ozzellc A THESIS Submitted to lflchigan.State'flniversity in.partial fulfillment of the requirements for the degree of DOCTOR OF PHIDDSOPHI' Business and Distributive Education 1967 geaéiy ’2‘: , ' 3;. I" 3. 3 _ 9-» “" 2.? 3" @memwy LAURENCE man. 02mm 1968 ACKHUJLEIIIHENTS The writer wishes to express gratitude for the assistance so ably provided by many persons toward coupletion of this dissertation. A special note of sincere appreciation is extended to the chairman of his doctoral committee and director of this investigation, Dr. Peter G. Raises, who gave so generously of his tine, and whose interest, assistance, and guidance were so essential in the development of the study. The writer also wishes to acknowledge the needed assistance, encouraguent, and constructive criticism given for the inprovenent of this study by the other members of his committee, Doctors Gardner Jones, 0. Donald Headers, and Robert Poland. Time and effort were generously given by consultants at mchigan State University campus. These persons consisted of a number of staff miners and doctoral students fraa several areas of study. It would take more space than available to adequately thank those persons individually for their contributions . A special note of thanks goes to the officials of the participating companies for arranging interviews with their nanagenent and technical accountants. Ultimately, the participation of all respondents depended on the ability and willingness of these culpany officials to convey the intent of the smdy to both their superiors and to potential respondents. I would be remiss if I did not extend my deep appreciation to iii .—v ii_~ .__—_ ._—— — .—§_.—_—‘ _ ——— .— _ —. _——_ —— lynx-enter Wed ale] To m description 1 Mm, patie doctoml prog °f “118 thesi Anothe my parents for having started no on my way sane years ago and then nurtured~along the desire to coupletea Job-once undertaken. To w wife, Patricia, gees those words and thoughts beyond description that extend my innermost feelings for her understanding nature, patience, encouragement, and effort throughout the entire doctoral program. Without her love and cooperation the completion of this thesis would not have been possible. Another word of thanks goes to our children, Janice, lbw-id, Brian, and Lori Jo who have had a I'part-time" father and have had to forgo new of the things a father normally would have done with his children. iv TABLE 0F CONTENTS Page ACKNCWLEIBHENTS....................... iii LISTOFTABLES....................... x LISTOFFIGURES....................... xiii LISTOFAPPENDICES..................... xiv CRETE. I THEPROBIMOFTHESTUDI.............. 1 Introduction.................. 1 TheProblen.................. 2 StatenontoftheProbleu.......... 3 PurposeecftheStudy........... S Assumptions.................. 5 NeedfortheStudy............... 6 LinitationseftheProblem........... 8 Definitionof‘rerms.............. 9 II REVIEJOFREIATEDLITERATURE............ ll: TheRoleoftheOomuunityOollege ....... 11: The Base for Developing Terminal Curricula . . . 16 Literature Related to the Improvement of Bookkeeping and Accounting Programs . . . . 18 Technical Accounting Recognition . . . . . . l9 ResearchStudies.............. 22 Integrated mta Processing and Accounting . . . 26 V CRETE TABLE OF CONTENTS (continued) own: Page III mmarfioommmnonowcr......... 29 GeneralProcedure............... 29 Task I: Survey of current and Projected Reed for Technical Accountants . . . . . 29 PopulationandSanple ......... 29 Denlopaent of the Instrument . . . . . 30 Procedure............... 31 Analysis................ 32 Task II: Conducting Interviews with Technical Accountants Regarding Job Activities............ 32 Population............... 33 Salple................. 33 Developentofthelnstrunent ..... 31; Analysis of Printed Materials . . . 3h ReviewbyJuryPanel........ 35 Pro-test of Interview meetionnaire. 35 Procedure............... 3? Task III: Analysing Interview Responses to Establish a List of Accounting JobActivities ......... 38 Analysisoflhta............ 39 InTotal.............. 39 BySiaeofFirn.......... to Task IV: Translating Job nta into a Set of Criteria that Could be Used to Assist in Appraising the Adequacy of a Post-High School Terminal AocountingProgran........ 1:1 vi TABLE (F CONTENTS (continued) m 1580 Proportion Performing Activity . . . . . 1.2 Rank Order of Activities . . . . . . . . 342 Frequency of Perfornance . . . . . . . . 1:2 Universality of Performance . . . . . . 1:3 Summary................ 1:3 IV THE FDIDIHGS, PART I: CURRENT AID PROJECTED mm STATUS OF TMENIGAL AGOWSINTHEmI-COUMIAREA......... Mt Does There Exist a Technical Accounting Position m; Past hploynent Analysis of Tri-County Area. . . 1:5 Over-A11 Trend of Work Force . . . . . . . . 1:5 Trend of Accountancy-Oriented Work Force . . it? Technical Accountant Trend . . . . . . . . . 159 Projected hployment Analysis for Technical Accountants................ Sh AnticipatedClungesbyFirm 55 Anticipated Changes by Number of Positions . 55 hpleyability of Technical Accountants . . . . . 58 Specially Trained over Generally Trained TechnicalAccountant.......... 58 Promotability of Technical Accountants . . . 59 InvelofPrasotability........... 60 Smary.................... 62 vii. TABLE (F CONTENTS (continued) own Page v m FINDINGS, PART II: ANALYSIS OF ACCOUNTING ACTIVITIES PERFQIHED BI TEHNICALACGOUNTANTS............... 66 Funetions................... 67 Haldng Financial Reports and Schedules . . 67 Analysis and Interpretation of Financial Reports................ 75 HaintainingLedgers............ 81 HaintainingJournals........... 85 Preparing and Initiating Data . . . . . . . 89 Recording or Posting Data . . . . . . . . . 93 HekingandUsingVorkingPapers...... 97 Non-Classified Maintaining, Analyzing, or Performing Activities . . . . . . . . . 99 Mathematical Computations . . . . . . . . . 107 Smary................... 116 Proportion Performing Activities . . . . . 116 BySizeofFirm.............. 120 VI was FINDINGS, mn- III: " DETEHINATION 0F EVALUATIVB CRITEIA . . . . . . . 123 Selection of Criteria . . . . . . . . . . . . . 123 Preportion Performing Activities . . . . . 131 Rank Order of Activities . . . . . . . . . 131 Universality of Performance . . . . . . . . 132 Frequency of Performance .' . . . . . . . . 133 Summary.................. 133 viii g Vw ..r . our ~ -' ~ -u-- "p... - gj , .- H _V . 7—, . I '. TABLE OF COWS (continued) cmnm 158° VII WI, CONCLUSIONS, AND RMWTIONS . . . . . 135 NatureoftheStudy.............. 13S NeedfortheStudy............ 136 LimitationsoftheStudy......... 136 RethodandProcedure............. 137 Findings................... 139 Past and Current mta Related to Technical Accounting Positions . . . . . . . . . 139 , Projected Need for Technical Accountants . 1140 Future of Technical Accountants . . . . . . lhl Accounting Functions and Activities Performed by Technical Accountants hployed in Firms mnufacturing mableooOdleeeeeeeeeeeee 11].]- Accounting Activities Performed by Technical Accountants According to Size of Pines Manufacturing Durable Goods . . . . . . lhh Conclusions.................. 11:5 Conclusions heed on the Initial Investigation............. 1146 Identification of Accounting Activities Performed by Technical Accountants . . 1146 Applicationoflhta............ 11:7 Boomendations................ 1h? CenoralRecenendations.......... 1A8 Educational Implications . . . . . . . . . 1&9 APestScript............... 159 ix Table Incr LIST OF TABIES Table Page 1 Increase/Increase in Total Deployment Since 1960 in Firms lhmifacturing mrable Goods in the Tri-CountyAreabyTotalandSizeofFirm..... 1:6 2 Increase/Decrease in Acc ountancy-Oriented Employment Since 1960 in Firms Manufacturing Durable Goods in the Tri-County Area by Total and Size of Firm . . . 1:8 3 Numerical Deployment Comparison of Accountancy- Oriented Positions Since 1960 in the Tri-County AreabyTotalandSizeofFim.......... 50 h Increase/Increase in Technical Accountant Employment Since 1960 in Firms Manufacturing Durable Goods in theTri-CountyAreabyTotalandSizeofFirm... 51 5 Numerical hloyment Cmparison of Technical Accountants Since 1960 in the Tri-County Area byramwdSiZGOfMeeeeeeeeeeeee S3 6 Past Supply of Technical Accountants and Bookkeepers in the Tri-County Area . . . . . . . . 5h 7 Anticipated Changes in Technical Accounting Employment to.l970 in Firms Manufacturing Dirable Goods in the Tri-County Area by Total and Size of Firm . . . 56 8 willingness to Baploy Specially Trained Over Generally Trained Technical Accountants in > T0taland'by31200fFirm............. 59 9 Prdmotability of Technical Accountants in Total andbySEGOmeeeeeAeeeeeeeeeeee 60 10 Level of Prmaotability for To chnical Accountants inTotalandbySizeofFirm........... 61 ll Cauparieon of Total Accountancy-Oriented Positions with Technical Accountants hployed in the Inn-cmty ma 0 O O O O O O O O O O O O O O O O 0 65 12 Activities of Making Financial Statements and Schedules Perfumed by Technical Accountants in Time Innufacturing Durable Goods (In Total and byFrequencyofPerformnce) ........... 68 I C V" 3 2 ‘wvih 3. m - -- - _-.—.I_~~«—..W.--~ ' LIST W TABLES (continued) Table Page 13 Financial Reports and Schedules Made by Technical Accountants in Firms Manufacturing Durable GoodsinTotalandbySizeofFirm......... 72 11: Analysis and Interpretation of Financial Statements Performed by Technical Accountants in Firms Manufacturing Durable Goods (In Total and by FrequencyofPerformance) ............. 76 15 Analysis and Interpretation of Financial Statements Performed by Technical Accountants in Firms Manufacturing Durable Goods in Total and by Size or m C O I O O O O O O O O O O O O O O O O O 79 16 Ledgers Maintained by Technical Accountants in Firms Manufacturing Durable Goods (In Total andbyFrequency of Performance) . . . . . . . . . . 82 17 Ledgers Maintained by Technical Accountants in Firms Manufacturing Durable Goods in Total and by Size or Fin 0 O O O O O O O O O O O O O O 0 8h 18 Journals Maintained by Technical Accountants in Fine Manufacturing Durable Goods (In Total andbyFrequencyofPerformance .......... 86 19 Journals Maintained by Technical Accountants in Firms Manufacturing Ihrable Goods in Total andbySiseofFirm................ 88 20 Preparing or Initiating hta Activities Performed by Technical Accountants in Firms Manufacturing Mable Goods (In Total and by Frequency of Portome) O O O O O O O O O O O O O O O O O O O O W 21 Preparing or Initiating Leta Activities Perfomed by Technical Accountants in Firms Manufacturing Durable Goods in Total and by Size of Firm . . . . . 91 22 Recording or Posting Activities Performed by Technical Accountants in Firms lhnufacturing Durable Goods (In Total and by Frequency of Perfme)eeeeee-eeeeeeeeeeeeee 9h 23 Recording or Posting Activities Performed by Technical Accountants in Firms Manufacturing mrable Goods in Total and by Size of Firm . . . . . 96 1d. —.__>4\ . Table 21: Nor 25 Her 26 Non 28 Ma 29 Hat (3"? 30 Per Hr—abgc' LIST OF TABLES (continued) Table Page 21; Working Papers Made and Used by Technical A Accountants in Firms Manufacturing Durable Goods (In Total and by Frequency of Performance) . . . . . 98 25 Working Papers Made and Used by Technical Accountants in Firms Manufacturing Durable Goods inTotalandbySizeofFirm............ 100 26 Non-Classified Maintaining, Analyzing, or Performing Activities Done by Technical Accountants in Firms Manufacturing Durable Goods (In Total and by Frequency of Performance) . . . . . . . . . . . . . 102 27 Nun-Classified Ikintaining, Analyzing, or Performing Activities Done by Technical Accountants in Firms Manufacturing nimble Goods in Total and by 85.23 Of Firm 0 O O O O O O O O O I O O O O O O O O O 105 28 Mathematical Computation Activities Performed by Technical Accountants in Firms Manufacturing Durable Goods (In Total and by Frequency of Perfme) O O O O O O O O C O O O O O O O O O O O 108 29 Mathematical Conqlutation Activities Performed by Technical Accountants in Firms Manufacturing Durable Goods in Total and by Size of Firm . . . . . 112 30 Percent of Technical Accountants Performing Specific Accounting Functions in Finns Manufacturing Durable Goods (In Total and by Size of Firm) . . . . 117 31 Cumulative Number of Activities Perfumed in Each Accounting Function by Various Percentages of Technical Accountants in Firms Manufacturing mable Goad, O O O O O O O O O O O O O O O O O O O 118 Figure LISTOFFIGCRES Cuparisen of Current and Additional Projected Need for Technical Accountants to 1970 for Firms Manufacturing Durable Goods in the Tri-County Area...................... Increase/Decrease Comparison of Tri-County hploymant Since 1960 by Firms Manufacturing mable mad. 0 O . . . C . C O C O O C C C O 0 An Evaluative Criterion by Which Post-High School Personnel Can Evaluate or Determine Content of Technical Accounting Programs for Durable Goods Manufacturers ................. Proposed Instrument for Evaluating Accounting Content in a Post-High School Technical Accounting Program for Firms Manufacturing Durable Goodsin the Tri-CountyArea . . . . . . Page 57 63 125 151 Appendix IIIQ'IIH LIST OF APPENDICE Tri-County Technical Accounting Survey questionnaireeeeeeeeeeeeeeeeeee Letter Accmpaming Tri-County Technical AccountingSurveyQuestionnaire . . . . . . . . . FirmsinInitialSample.............. Printed Materials Analyzed to Obtain Accounting ActifltieaOOOOOOOOOOOOOOOOOOO Jury Panel for Accounting Activity Questionnaire . Interviewmestionnaire.............. Chi-Square Analysis of Sample and Population . . . Anticipated Tri-County hployment Market to 1970 forTQChmcalAccmmuee eee e eeeee e Increase/Increase Comparison of Tri-County DeploymentSince1960.............. Accounting Activities Performed by Technical Accountants Arranged in Rank Order by Proportion Performing the Activity . . . . . . . Activities Involved in Preparing Financial Statements and Reports Ranked in Total and By Size of Firm According to the Proportion Performed by Technical Accountants in Firms Manufacturing Mble 000d! 0 O O O O O O O O O O O O O O O O 0 Analysis and Interpretation of Financial Statements Ranked in Total and by Size of Fina According to the Proportion Performed by Technical Accountants inFirmslhnufacturing‘mrableGoods . . . . . . Ledgers hintained Ranked in Total and by Size of Firm According to the Proportion Performed by Technical Accountants in Firms )hnufacturing MablOGOOdaeeeeeeeeeeeeeeeeee xiv 171 17h 175 180 183 181. 193 19h 195 196 208 210 212 LIST OF APPENDICES (continued) Page Journals Maintained Ranked in Total and by Size of Firm According to the Proportion Performed by Technical Accountants in Firms Manufacturing mrable Goods . . . . . . . . . . . 213 Preparing or Initiating mta Activities Ranked in Total and by Size of Firm According to the Proportion Performed by Technical Accountants in Firms Manufacturing Durable Goods . . . . . . 21h Recording or Posting Activities Ranked in Total and by Size of Firm According to the Proportion Performed by Technical Accountants in Firms Manufacturing Durable Goods . . . . . . 215 Working Papers Enpluyed as Ranked in Total and by Size of Firm According to the Proportion Performed by Technical Accountants in Firms maommmableoomeeeeeeeeeee 216 Non-Classified Maintaining, Analyzing, or Performing Activities Ranked in Total and by Size of Firm According to the Proportion Performed by Technical Accountants in Firms Manufacturing mabIOGOOd-‘eeeeeeeeeeeeeeeeee 21? Mathematical Commutation Activities Ranked in Total and by Size of Firm According to the Proportion Perfumed by Technical Accountants inFirmsMamIfacturing Durable Goods . . . . . . 219 Smary of Kendall 's Coefficient of Concordance and Chi-Square Analysis late by Accounting Function as Perfumed by Technical Accountants in Firms Manufacturing Durable Goods . . . . . . 222 A List by Function of Surveyed Accounting Activities not Included as Part of the Criteria List for Evaluating Poet-High School Technical Accounting Programs for Fine Manufacturing nimble Goods in the Tri-County Area . . . . . . 223 CHAPTER I THE PROM OP run STUDI INTROWCTIOM Today, more than over before, due to social, economic, and (technical change, schools have an educational responsibility not only for the present, but also for the future. Over the years, educational institutions have been a mirror of that portion of society they serve. As society progressed slowly through a process of evolution, the schools were able to keep pace with this gradual change. Schools were able to assist in the education of an individual for the environent in which he would work and live for the rest of his life. However, it is generally felt that with the advancing rate of technological change, schools are expected to assume a larger role in preparing individuals adequately for citizenship and more specifically, to become an economic asset in society. . Thus, if it canbo assumed thatafunction of the school is to prepare present students so they will participate intelligently, socially, and oceanically in the society to which they belong, it follows that the curricula and programs must be based on this social and economic reality. There seems to be no quarrel that those reality factors, current and projected, should be considered in the planning of a school's programs. . Therefore, it seems reasonable to usane that those involved in 1 the tccchj consider“ in Such a Mutant future. j can be to involved Mom. 0: MW: ”mutt “front 7 pamien} (2) my 39% Scans 1 “Count Toner 2 the teaching profession should attempt to assess the surrounding social, economic and technical conditions and that these conditions should be considered in a program of curriculum development or adjustment. Although, in such a situation, emphasis would be placed on the present, one must understand that the present is based on the past and used to picture the future. Pru this one could say that the basis for educational change can be found in current society, and it is the responsibility of those involved to assist in relating the contemporary society to the educational mm- One way of determining this needed change is by investigating contemporary activities performed by individuals in the related occupational field, projecting the future, and then by translating these current and projected trends and activities into educational curricula. TR! PROM During the past decade, and during the past five years in particular, accounting literature has devoted each of its content to two areas: (1) electronic data processing and its use in accounting, and (2) collegiate education as a prerequisite for employment in accounting. It appears tlmt the increased use of automated equipment and the emphasis toward a post-high school education have contributed to the shifts in the employment of accounting-type personnel. 0n the contemporary scene it is said that employers prefer a post-high school trained accountant to fill positions for which a high school ehcation was formerly sufficient. It is generally recognized tint an individual's decision to enter a partimlla factors, in certain 're View the on meationa for occupm in the meal The accounting schoolqra; the Nonpa- m‘ Scare terminal a by rerem maemh’ the bum a particular occupation is dependent upon a number of rather cmlex factors, including among others, une's interest, capacities, values, and certain "reality‘l factors. Considering the reality factors, one must view the current job market as well as the future potential of the occupational field. The individual and society cannot afford to train for occupations without a futureerthose that have or will be replaced in the near future due to inventions and/or autamtion. The problem area of this study is shown by the paucity of accounting literature dealing with the specific education of a pustéflgh school;trained accountant} his accounting duties, and activities , or the occupational (job) opportunities for such a person. In view of . this scarcity of established evidence it appears that post-high school terminal accounting programs2 and course content have been established by referring to: (a) personal opinion or observation, (b) non-related research, and/or (c) the professional accounting programs leading to the baccalaureate degree in accounting. Statement g_f_‘_ m pggblen. The problem of this investigation was lPoet-bigh school is dermd ed a level of education beyond high school but less than a baccalaureate degree. 2Terminal accounting program refers to those programs offered within a post-high school educational institution which could load to direct employment as a technical accountant. These programs are also referred to as for the 'emloyment-bound' . f to analyze order to an be snployec mm in inStitutio: l. h to analyze accounting activities performed by technical accountantsl in order to arrive at a set of criteria related to Job activities that could be employed in appraising the appropriateness of a terminal accounting program in a omnity college or other post-high school educational institution. More specifically this investigation attenuated to: 1. Determine the current and projected need for technical accountants . 2. Establish a list of accounting-type activities performed by technical accountants. 3. Determine, according to size of firm, it there are clusters of accounting-type activities perfomed by technical accountants . )4. Establish, frcn the list of accounting-type activities, selected criteria that could be used to assist in the appraising of a technical accounting progran. 5 . Translate the selected job activity data, performed by the technical accountant, into a set of. evaluative criteria that. an institution could employ to assist in appraising its post-high school teminal accounting program. 1A technical accountant was referred to as one who performs accounting-type activities for which training in accounting beyond high school is a requisite, but for which a baccalaureate degree in accounting is not a basic prerequisite” for employment. The activities were those usually included in the accounting cycle that deal with computing, recording, summarizing, classifying, and reporting accounting information such as: computing costs, payroll, etc.; recording information in lodgers and'boolcs of original entry; analyzing accounts such as ‘ receivables, payables, cost, etc.; classifying information for easy retrieval; and making such financial statements as the balance sheet, insole stataent, schedules, division of capital, funds statment, etc . W831” appraisal C relatedto objectives: 1 e 2 Th1: _P_;I_1:E2229,2f_'_21_9_8_m_dz. The prinary prupose of the study was to analyse specific accounting activities that in turn could be used in the appraisal or evaluation of post-high school accounting programs. Closely related to this main purpose of the study were the following secondary objectives: 1. 3. Ascertaining whether the current and projected need for technical accountants could warrant the establishment and maintenance of post-high school terminal accounting prograns . Obtaining of employment and job'analysis data that ‘ could be employed by counseling, guidance, or educational personnel in the advising of individuals regarding the technical accounting area. htablishing of a list of accounting activities performed by account technicians that accounting instructors could use a) as a guide to evaluate the content or scope of their instruction and (b) to initiate in-service or retraining programs for technical accounting at the post-high school level. ASSUEPTIOB This entire study rests on the following set of assumptions: A. That there exist aployees who are engaged in accounting-type activities for which a professional degree is not a basic requirement. B. That there exists a need for technically trained accountants and that this need can be projected to continue in the future. 0. That the accounting-type activities pertained by these technical accountants are identifiable . D. That there will be a cluster of activities perfomed by technical accountants according to the size of That: I “News “5 World 11 ‘hich he so 'Nietal cl bani 811v shame, ”Wilt in “More rat, of 1 business. E. That the clusters of accounting activities performed by technical accountants will form a base that can be translated into an arrangement that could be used to assist in appraising the appropriateness of the accounting portion of a post-high school terminal accounting prom. NEED Fm THE STUDY The current emlosion of knowledge in the technological areas appears to create a dilema for business and educational institutions. lead portrayed this situation well when she said, We one will live in theworldintowhichhewasborn, andnoonewilldieintheworldin which he worked in naturity."1 0n the other hand, failure to recognize societal changes would prevent the curriculum in today's schools from being alive-one in which upetoedate skills, ideas, and standards are onphasized. Ignoring the technological changes in society would only result in the preparation of students for a world that no longer exists. Therefore, educational programs need to consider not only the current rate of technological cinnge but the process by which individuals can adjust to the changing world. when educators consider this increasing couplezity of manufacturing laterials, processes, products, and the rapid expansion in the use of _‘_ llhrgaret Head, "Thinking Ahead: why is Education Obsolete?” Harvard Business Review, 363 lovenber-Decenber, 1958, p. 31;. electronic a paving r accmntants in applicat “muting : my" there at the post Sivan to th pm'high 8: Ol—J dflHmm 7 electronic data processing for accounting functions, there appears to be a growing recognition of and an wheels on the need for trained accountants with a relatively high level of technical knowledge and skill in application. While those persons currently employed in technical accounting positions have acquired their knowledge and skills in many. ways, there appears to be a need to provide adequate technical training at the postehigh school, non-baccalaureate degree, level. The basic need for this study developed out of the consideration given to the following items regarding terminal accounting programs in post-high school educational institutions . 1. There is no large-scale study showing the job possibilities in accounting for the graduate of a post-high school terminal accounting curriculum. 2. Previousstudies have not concerned themselves with the post-high school terminal accounting program. 3. Post-high school terminal accounting programs need to be adapted to the job market. 14. Gomnity college accounting curricula are not always geared toward the terminal student desiring anployment upon the cmpletion of the program. 5. There is an apparent need for'the deve10pment of programs for training post-high school, non-baccalaureate degree, technical accountants. 6. current employers tend to prefer workers who enter the labor marlcet to be older and to possess a great degree of occupational preparation in their specific field. 7. Educational instructors and leaders, prospective students, and the general public need to be alerted to current information about accounting functions and activities that could be performed by prospective graduatesof a two-year post-high school educational institution. V I- , ., a. £9"J~5_ The l. developmen to assist : post-high Skills, an accounting LIMITATIONS OF THE PROBLEM The study was limited in the following ways: 1. Limitations as to M. This stuw dealt with the development of a list of accountingotype activities that could be used to assist in the appraising of a terminal accounting program at the post-high school level. It does not include the study of what knowledges, skills, and aptitudes are needed to perform these activities. 2. Limitations 93 3.2 £99113. This shady was concerned with those accounting activities for which the following was appropos: (a) The employee was full-time and his primary function was that of performing accounting-type activities. (b) The employee was in a position for which the enquloyer would consider post-high school, non—baccalaureate degree, accounting education sufficient for initial employment. (c) The employee was in a position from which the employer would consider prmotion or advancement possible . 3. Limitations 3.3 to. Area. This study was concerned with three Hichigan counties, Clinton, Eton, and Inghan, (tri-county area) as the minary service area of two post-high school instiimtions. h. limitations 33 to Industry. Inasnmch as a sizeable portion (29%) of the employed population in this tri-county area was working in concerns manufacturing durable goods, this study was concerned with the mm account Utility 4 Wee} IL “Wroje "thorn; coincide; “comm Q ”elated pa telephone, Nations, marmfacturers of durable goods .1 DEEITION OF arms Accountancy-Oriented w. Refers to all those doing accounting-type activities as their full-time employment in the Tri- County area and includes all accountants, technical accountants, and bookkeepers. Accounting Activi I. ”An activity is a project or program, a subproject or subprogram, or am convenient division thereof to which authority is delegated. An activity is the lowest practicable coincident level of a function. "2 AcgounLig Technician. Used interchangeably with "technical accountant.‘ (See technical accountant) AccounEg-tng Activities. Refers to those normal accounting duties required to couplets the established accounting cycle and its related functions . It does not include such tasks as: answering the telephone, filing data, running errands, attending meetings, human relations, and so forth, that technical accountants may at times perform. Bookkeem. "One who does all the bookkeeping of an enterprise, or whose work is specialized, such as one who maintains the general ‘ ledger or works on accounts receivable. A bookkeeper may also be an accountant if, in addition, he prepares or supervises the preparation lhetail, service, governmental, and non-durable mamfacturing firms Should also be mveyed, but this does not fall within the scope of this study. 23110 L. Kohler, _A_ Dictigm f3; Accountants, (third edition, hglewood Cliffs, New Jersey: Prentice-Hall, Inc., 1963), p. 23. I‘m ‘ "new In 2 h M?“ ’u 10 of financial stctcunts from the accounts, designs the systems .ployed, or supervises the recording of transactions.“ m m. I'An educational institution offering instruction forpcrsonsboyondthesgoofthonomlsocondaryschoolpupdl, ins m geared to the needs and interests of the local lovel....."2 It is further defined as a I'post-high school educational institution offering a two-year program either of a terminal nature or as a preparation for further training in a college or university.’&3 m @3114. Those goods and materials that are sachet permanent in structure and depreciate over a period of years. hey are primarin metal and wood products. They do not include fabrics or chemical substances. hogan $29,. Refers to positions that make policy and policy decisions for a firm such as president, vice-president, treasurer, executive secretary of the firm, etc. M W. Refers to the first position of pro- netsbility where responsibility for activities of others if experienced, such as assistant supervisor, accounts receivable supervisor, etc. m. “Conceived as a collection of activities having related purposes."h 12“.. Po 7°- 2Carter V. Good (od.) III. of Education (second edition lowfork: leery-Hill,“ $.75. l, p. 08. , 3M» P- 305- kalcc, n. 2.3., p. 228. am. no: into a leg classifica Pm; a MmMlle: Nation; mg Trained Accountant. bfers to a post-high school technical accounting training progran applicable to all industries. £31 £220 "A detailed listing of duties, operations, and skills necessary to perforn a clearly defined, specific Job, organised into a logical sequence which nay be need for teaching, enploynent, or classification perpeeesml lana‘gnt _I._e_v_'_e_];. Refers to those positions that assist in the planing and organising of the over-all work load such as assistant controllers, cartrollers, eto. National Infomtion. ”Systentical]: organised data about the nature of work, duties, responsibilities, and compensations involved, including infornatien about enploynent outlook, pronotional opportunities andentrunco roquirenentsniththepnrpose ofhelpingpersonsnakea vocational ohoice."2 Pos 412 m. A level of education beyond high school but less than a baccalureate degree. ’refossional Accountant. One who has as a basic requisite a baccalaureate degree in accounting or business adninistration with a naJor in accounting. In some cases, he nay have a certified Public Accountant certificate. In his daily activities he nay record, classify, urine, and report inflation, but nay also interpret data, prepare budgets, audit books, not as a financial adviser, prepare tux infornution A label-t. o. ween:- (ohm-ea), Definition of roses in Vocational QIM_ Arts Idnca____t_i_.___,on (Anerican ocaitonal _issocIat-i'on, 15357, )e 2232-, P0 17- 12 reports, design accounting systems, perforn analyses of costs, nake econdc analyses, and other nore complex activities. Second-line Sumigion. Refers to the position where there is responsibility for a unit of work such as accounting supervisor, office supervisor, etc. M _o_f_ 1393. Refers to the total nunber of employees on the payroll. M Trained Accountant. Refers to a post-high school technical accounting training progran for a specific industry. Technical Accountant. (Sane as Accounting Technician) he who pol-fans accounting-type activities for which training in accounting beyond high school is a requisite, but for which a baccalaureate degree in accounting is not a prerequisite for enploynent. The activities were those usually included in the accounting cycle that dealt with cupnting, roeording, su-arining, classifying, and reporting accounting infernatien such as: conputing costs, payroll, etc.3 recording infornation in lodgers and books of original entry; analyzing accounts such as receivables, payublos, cost, oto.3 classifying inforntion for easy retrieval; and naking such financial statements as the balance sheet, incue statement, schedules, division of capital, funds statement, etc. fennel Lacuna Oin‘ricula. Refers to the progrun or prograns offered within a post-high school educational institution which could load to direct upth as a technical accountant. those are also referred to as for the “employment bound' students. Lmnal— Accounm m. Used interchangeably with ' Terminal Accounting curricula." (See I"Peninal Accounting curricula“) 77“, r 7 77-7 - _ __;_..__ . _ _ I ~ A ,, . , ....,.‘..-... ‘-'_'~ _ m a Eton-J"v, _!"2 H.- 77‘." ~ ~ 39g dashed pri accounting collection 1 & Eaton, and Put-high a “4.2 ind-mm Vocation. ll 13 Terminal 2%. Refers to the accounting education required or desired prior to the obtaining of a position as an accountant or accounting technician. It in no way inplies that the learning or ohcation is capleto. fri-Gountz £25. Refers to three counties in Michigan (Clinton, Baton, andlnghan) thataretheprinaryservice areas of theLansing post-high school educational institutions. Vocational Guidance. ”The process of assisting individuals to understand their capabilities and interests and to choose a suitable m‘uue .1 1212-. e. n. St! P'rfomed accountant Virtually human literature between, ( edIlcation‘g (3) the ca ”19? relat emu mammmm studies and literature relating directly to the Job activities perfused by technical accountants or the training of these technical accountants in pest-ugh school terninal accounting propane were virtually non-existent. Therefore, when on considers this void in the literature about technical accountants it becenes necessary to survey literature of related areas in an attenpt to show the interrelatimehip between, (1) the role of a e—unity college or other post-high school educatieml institution, (2) the developing of toninal curricula, and (3) the selected bookkeeping and accounting studies and literature as they relate to the understanding and training of technical accountants. 1'20... Eel-.2. 2!. 2.1". w 9.032s... The role or purpose of the cmnity college as it relates to the develop-eat of terminal prograns, vocational education, has been rather firmly established on paper if not always in practice. In 2‘2. Public Junior College, the yearbook culittee states the ob: octivos of a cunity college as a post-high school education institution,» beings Valid purposes of the public Junior college can emerge only fru the characteristics of society and theneedsefindividuals . . . . Inthelightofthe foregoing considerations, the four najor purposes of the public Junior college can be identified as (a) preparation for advanced study, (b) vocational education, (c) general education, and (d) co-unity service. Although these objectives are widely 1h Th1 lion he In Moses: 15 recognised and generally accepted, it is clear that each college has a responsibility for detenuining its own specific objectives .1 These objectives were further supported by Harterana in his . analysis of the Michigan cmnity colleges' stated objectives in 1957 when he wrote that Michigan conununity colleges agree strongly on three purposes: . (1) the provision of courses for students who plan to go on to further collegiate study and a baccalaureate degree; (2) the offering of courses of a teninal occupational nature for persons seeking enpleynent in business, industry, and cone other fields inediately after leaving the sanity colleges ; and (3) the provision of a broad and flexible progran of continuing and adult education for out of school youth and adults in the conunity.2 The report also recognized the community college novenent as the best potential source for occupational education. Peterson described the multipurpose role of California Junior colleges with the following statement, ”To offer instruction leading to transfer to senior college; offer instruction in vocational-technical fields leading to enplcynent; and to provide a progran of general or liberal arts courses. '3 lHenry Nelson (ed.), The Pub___l_._i__c Juni__§_t£_r_ college, The Rift -fifth Ioarbeek _e_f _t__he lat__i_.__onal Seciet for theS of Education (Chicago: University ef Chicago Press, 19 6T—pp. 63:39. 23ebastian v. lax-term The Con-init College in Hie hi Staff Study No . l (Lansing, mchi-Ea'nfl'Tchiganm'” Legislati' ""§tu' dy Canittee on Higher Education, 1957), p. 61. 3s. 3. Peterson, "The Role or‘ the Junior college in California, Galifor_ni2 lducati____o__,n Volune I, Huber 2 (October, 1963), p. 3. objective l6 Mall synthesized the e-enly accepted ce-Iunity college objectives as: 1. To provide. a program of general education for all students enrolled. 2. To provide college parallel and transfer courses in the general areas of pro-professional courses and in the liberal arts. 3. To provide technical propels which are terminal with the security college and which will equip the student with Job skills upon completion of the course of study in the annuity college. 1:. To provide adult education and cemnity service propane. 5. To provide a full pregran of guidance servicee.1 Lb; M £9; Develm Terninal Curricula It has been said any tines that educational curricula or propane should be a nirrcr of that portion of society which they serve. If one can conclude fru the previous statements regarding the role of the enmity college that one of the nltipurpeses of this institution is to assist in the guidance and training of individuals with an inediate vocatieml goal through terninal propane, the institution should then offer nob propane. These terminal or technical propane should then ninic the purposes of the interested parties: (1) the student, (2) the institution, and (3) the world of work. Larson considered the student aspect in this state-cut, “The «national curricula must be ”geared” to nest the needs of the 1John Robert Iinball, unelysis of Institutional Objectives in hehigan Cunnity Colleges' (umblished Edd). dissertation, Michigan State University, East Lansing, 1960), p. 7. Mien mn‘m “'1: '11 “'1 m1 17 prospective enployees as to scope and level of course offering. Need rather than status should be the criteria applied in the selection of courses and content of courses.“- Sunnerer stresses both the student and the institutional aspects when he stated: The developnent of educational programs which would nest the needs of students in the area served by each omnity college has been of vital concern since the beginning of the community college novenent. The interest in appropriate educational propane has indicated the development of vocational education courses designed for the student who will terminate his fernal education at the «unity college level.2 Hard probably best analysed the viewpoints of the three interested parties with this statement, 'The Junior college propan must be built upon a careful analysis of the needs of the omnity with constant reappraisal of the occupational trends."3 The needs of the cmnity were stressed in a different nanner along with a word of caution by Blocker, Plumer, and Richardson when they wrote: The connunity college nust remain fluid in its educational objectives, propane, and adninistrative organization in order to respond effectively to new conditions and denands as they arise. This does not neon that the college not be a pot peurri of responses lliilton E. Iarson, "A Study of the Characteristics of Students, Teachers, and the Curriculun of Industrial-Technical Education in the M110 Calamity Junior Colleges of Hichigan" (unpublished Ph.D. dissertation, Michigan State University, hot Lansing 1965), p. 1. 2Kenneth Sunnerer, ”A Study of Social Status and Selected Factors IItin-esoxetou by attend; moms and Students completing Two tears of college Work at Flint Cemnity Junior College” (unpublished IdJI. dissertetiou, Hichigan State University, rest Lansing, 1965), pp. 29-30. 3Phebe Hard, Terminal Education i; the Junior College (New York: Harper a Brothers Publishers,"'§E'T"l 7 , pp' . 6232' 18 to real or inagined needs; there nust be reason and logic behind changes and additions to college propane lest the stability and integrity of the institution be eroded.l The over-all philosophy of the canunity college was eloquently phrased when 'I'norton stated, I"l‘he calamity college philosophy sees the college as a creation and servant of mankind, responsible to the will of its creator, ready to adapt to changing ethicational needs with appropriate educational opportunities."2 Re elaborated on this viewpoint with, “The junior college may, and is likely to develop a different type of curriculum suited to the larger and ever-changing civic, social, religious, and vocational needs of the entire counsity in which the college is located. '3 In cannery, it has been stated that the entire service cmnity for an educational institution should be _the base for determining the purposes, the objectives, and the propane of such a post-high school educational institution. Literature Related _tg th grovenent 2g Bookkeggiflg fl deeming m; Along other necessary requirements prior to the establishment of Idlyde r. Blocker, Robert H. Flu-er, and Richard 0. Richardson, Jr., Th; Two-Tear Cells 3' A Social mthesis (hglewood Cliffs: mu“.m1, me, 1 ’ po 39o 2'James W. Thornton, Jr. , The Cemni Junior College (New York: John may and Sons, Inc . , 1960);"15. ' '31:". " ”I! 3Ibid. , p. 51. twat swam: anew positio: has bee. chufi of past might 155 re: bOOkkee “let: Wkfi 19 a vocational education progen, and more specifically a terminal accounting progran for a post-high school educational institution, one last consider the activities performed by those currently in such positius. It is understood that the future cannot be predicted by “what has been' or “what is” performed by uployees in a specific Job classification. However, until sonething better is devised, the studying of past trends along with current performances gives a more accurate insight into the future than no facts at all. Bovine in his summary of 185 research reports and 1:78 non-research articles written about bookkeeping and accounting during the 1950's found that: The research indicated that improvement in teaching in this area could be accasplished if more were known about the Jobs, the requirements for employment, and the current records and practices in use in the businesses. This would also be helpful to both the curriculum planners and the bookkeeping and accounting instructors in improving the bookkeeping and accounting courses. These euploynent characteristics could provide a basis for the deletion of obsolete materials and procedures or the addition or updating of various current materials and procedures. Technical accounting recofltion. There is a paucity of literature relating directly to a technical accountant or to a into year post-high school program for the training of accountants. However, there are new articles and research reports relating to the content that should be included in high school bookkeeping and a lesser number in reference to Links w. nouns, "A Comprehensive Analysis, Classification, and synthesis of Research Findings and Thought on the Teaching of Bookkeeping and Accounting 1950-61'l (unpublished Ph.D. dissertation, Indiana Unmsity, Remington, 1962, Vol. I and II), p. ll2. ‘un deg are tv< the 'b school Educat for ap W boo a c011 that t Sunni a Spec 20 the degree accounting program. Host reports tended to imply that there are two levels of educational training for those involved in maintaining and interpreting company records. Bovine alluded to the two levels of training for those entering the "bookkeeping-accounting" Job area when he stated, “At least a high school education was desirable for bookkeeping applicants, and a college education or a certified public accountants certificate was desirable for applicants for accounting positions."1 The Dictionary of Occupational Titlesz lists 17 positions related to bookkeeping and accounting for which either a high school diploma or a college degree is the basic educational requisite. Devine3 also found that the terms "bookkeeper” or “accountant" were interchangeable and sunstines used when referring to a category of positions rather than to a specific Job title. However, there now appears to be a gradual shift in the trend toward the acceptance of post-high school, less than baccalaureate degree, training programs for accountants or bookkeepers for one types of employment. Lynn in giving the 1961: AICPA' 8 opinion regarding educational requiraaents for accountants did indicate an awareness of a two year post-high school training for technical accountants when he stated: Thus if you do not intend to continue your formal education beyond joiner college, it would be appropriate 1Ih___i_c_i_., p. 123. 2U. S. Department of Labor, Diction_a_11_ of 0c tional Titles: Definitions of Titles, Third edition, Volume 17193; Egan shington: Goverment Printing ffice, 1965). 3Devine, 23. git-9, p. 111;. 21 to take as many accounting and business administration courses as are necessary to prepare you for your i-odiato vocational plans after graduation. In 1965 the Honorable John H. Dent went one step further when he gave a 'blankot' approval of post-high school terminal prep-ans by stating: Far too long, inmyopinion, has thebulkof the educational commaity refused to consider the problem of the vocationally oriented post-high school education. The nation needs the skills and services of the many who can contribute to our national growth by specialized vocational education of one and two years at the post-high school level.2 Representative Dent further recognised the value of post-high school training when he wrote about the new civil service requirements: The federal government has taken another constructive step forward through the continuing programs of the United States Civil Service Commission to place greater emphasis on the recruitment of high quality applicants for Jobs in the federal service. The qualification standards for accounting clerk, supervisory accounting clerk, and accounting technician have been realistically revised so that educational substitutions of two years of post-high. school education are fully substitutable for the 08-]; grade. In Transmittal Sheet No. 85, dated October, 19614, for inclusion in Civil Service Handbook 1-118 the Civil Service Concussion said (underline added) 1. The qualification standards for Clark Gash/6 (in the 08-300 Group) and Accounting Clerk and Supervisory Accounting Clerk GS-h/6 (in the 08-500 oreup) are reissued. (The educational substitutions have been revised so that 2 years of post-high school education is fully substitutable for 05-h. This will facilitate recruitment of aduates of or cells s commercial schools. e long o expcr enco required tables have also been revised to avoid lantern 3. Lynn, “Education and Professional Training", Lam—ale; W Mm 11? (June, 1961;). p. 81- 2Honorable John H. Dent, "How U. 3. Civil Service Standards for Accounting Technicians”, .122 Balance Sheet (Hay, 1965): Po 398. Wine 1 which n‘ The fin "My w 22 sinltaneous increments in both the general and specialised eqerience.) 2. The qualification standard for the Accounting Technician Series, 03-525, is reissued. (The educational substitutions have been revised so that 2 years of post-high school education that includes bookkeeping or accounting courses is fully substi- tutable for 68-h. This will facilitate recruitment of Eaduates of 1%” college and business and comorcial schools. Research studies. Stoner interviewed 130 retail business owners having less than eleven employees to determine various types of information which might be useful in organizing a training program in retail accounting. The findings relating to ac counting procedure and thus relevant to this study were: 1. 3. h. 5. ion. Eighty-eight per cent of the businessmen were satisfied with their present accounting system even though it often was not rated highly according to the criteria. Approxinately one half of the businessmen who were dissatisfied with their present accounting systems wanted to add details which would give them information necessary to exercise better financial control over their businesses. Not one of the five essential or the five desirable practices regarding the handling of cash was followed by all of the businesses. Host of the retail businesses did not follow the desirable practice of keeping fornal records of their accounts payable nor did they use a systen for keeping records of purchase terms in order that cash discounts could be taken pruptly. I'Issential" and "desirable” practices regarding sales, accounts receivable, and extending credit to new oustalers varied greatly and were not followed completely or consistently by the businesses. develops ilplfinen attempt . t° estabj elactriu With for by e19 ct] 23 6. Although two thirds of the stores did not prepare financial budgets, the responsibility for most of those which were prepared was assumed by the proprietors or managers. 7 . The responsibility for the preparation of comparative financial statements was evenly divided among the businessman, their employees, and outside accounting services. No person was assigned this responsibility in slightly more than one half of the stores. 8. Many routine clerical accounting activities were being perfumed by the proprietors or managers.1 Stoner recauuended that a training program in retail accounting developed from the findings of this study should be considered for implantation into the accounting program of the University of Pittsburgh. Although Stoner's study does not closely parallel this one , he does attempt to solve a problem of surveying the need and using the results to establish a specific traimng program. In 1957 Leesz analyzed accounting knowledges and skills needed by electrical engineers in Hhcde Island as determined by personal interviews with forty of the fifty-four total sample. He found that an understanding by electrical engineers was necessary for the following accounting activities: Taxes Fixed Assets Accounts Payable Voucher System Expenu Records Accounts Heceivablo Cost Control Payroll Short-Term hdgets Inventory halnation 1Janos Kendt Stoner, Inn Analysis of the Accounting Systems and Praticos of hell, Independent Retail Businesses“ (unpublished ldJ). dissertation, The University of Pittsburgh, Pittsburgh, 1953), pp. l-tz . 2(Ioorge Lees, ”An Analysis of Accounung Stills and Knowledgos Used by Selected Experience Electrical Engineers in Rhode Island" (unpublishsd Ph.D. dissertation, University of Connecticut, Storrs, 19573 . their! imam: 0! Lin 1mm: f 01' thl Problel 1mm 2h Loos]- study was also related to this one by method of approach - the interviewing of individuals involved to assess need for possible implementation in a specific curriculum. Ernst analysed accounting systems of 108 selected busimss fines of Alva, Orlahula with a purpose of att-pting to improve accounting instruction. Data were obtained by interviews with those responsible for the accounting functions. These findings relative to the writer's problem of surveying a local need in order to improve accounting instruction were: 1. 2. 3. h. The general Journal used extensively in the textbooks was not used in many of the businesses. About one third of the businesses used sales Journals; one fourth, purchases Jourmls; and one third, general lodgers. Accounts receivable lodgers were very often a file of sales tickets and the accounts payable lodgers were the unpaid purchase invoices. Twenty-one businesses maintained a perpetual inventory. The reminder of the businesses in which inventories were taken was by physical count once a year at the original cost value. The standard closing procedure presented in the textbooks was used in only 27 businesses. The remainder added the columns of the special Journals and posted weekly or monthly to detensine incom and ensues. Seventy-two of the businesses made volume comparisons with the preceding year. Fifteen casputed per cent of net profit for the year, and twenty-seven computed costs such as cost per unit. One third of the people interviewed felt that formal preparation in accounting was not essential in order to perform the accounting work in their businesses; one third, that it was not essential but helpful; and one third, that it was essential. Those reporting 25 that accounting preparation was not essential had less accounting training than did the other two groups. 6. Over two thirds felt that a thorough understanding of bookkeeping and accounting constituted essential preparation for accounting positions.l Reconnendations presented for improving instruction were: 1. Accounting teachers should use instructional materials that illustrate suitable records for mall business and be aware of current practices in the surrounding businesses. 2. Single-entry methods should be introduced in elementary accounting. 3. Teachers should supplement the textbooks' business forms. It. The canbined cash Journal should be emphasized for mall businesses. 5. More time should be devoted to the study of the cash basis. 6. Various methods for closing the books should be presented. Templetonz and Bennett3 investigated requirements, characteristics, and duties performed by accountants but the details of their studies were not included here because information about Job activities was obtained frm management and not directly from those actually performing the activities . 1mm Alice Ernst, "An Analysis of Accounting Systems and Practices with Implications for Improvement of Instruction in Accounting” (unpublished Ph.ll. dissertation, Graduate College, University of Mahala, Norman, 1959). 2Logan Templeton, Jr., "Analysis of the Duties, Educational and Personal Requirements of Junior Accountants in Austin and Houston, Texas'. (unpublished Haster' s thesis, Graduate School, The University of Texas , 3Loonard Eugene Bennett, ”A Survey of the Educational and Personal Characteristics Required for Initial hpleymsnt of Accountants in a‘ Selected Group of Iowa Industries' (unpublished Master's thesis, Iowa State Teachers College, Cedar Falls, 1958). then Ir. area 0: rectum school for gr; Emile. in the Ihonld Mien fluila Mokke 26 In 1955 worsnl surveyed the activities of bookkeepors and compared th- with content in the bookkeeping courses taught in the metropolitan area of Pittsburgh, Pennsylvania. Her basic purpose was to make room—endatims for improving the bookkeeping instruction at the high school level. The maJor finding and conclusion was that it was difficult for graduates of a high school bookkeeping course to apply the obtained knowledgos on the Job. hployers felt the materials and content covered in the bookkeeping course were smowhat impractical and that bookkeeping should be made more realistic. Moran's study was included in this review because her purposes and some of the procedures followed were similar to this study. However, she did obtain the information from the bookkeepers by questionnaire as opposed to interviews. Intoggted Data Processg fl Accounting , ’ Although the implications of electronic data processing as it relates to the present and future status of accounting positions were not part of this study, it would be remiss not to include acme research relative to this technological change. It has been said that data processing does not replace skilled or semi-professional employees but may relieve sane unskilled workersfrom menial tasks so they can be used to perform more pressing functions. Edwards found this to be true in his smdy when he interviewed the machine accounting personnel in forty-two caupanies to study the . 131st» 1!. Saint Agnes Moran, "A Survey of Bookkeeping hployment to Improve Domeping Instructional Materials and Bqui nt" (unpublished Ed.D. dissertation, New York University, New Ibrk, 1955 . _ fi—w.—§_—— __ effect of Indy were 2? effect of detonation on accounting Jobs. The findings related to this stuw were: 1. while fewer employees were needed to perform the processing of accounting data by machine than by manual methods, there were no indications of any reductions in the total number of employees as a result of automated data processing oquipnent. 2. The utilization of the machines was generally for billing , inventory control, and payroll with new functions being added fru time to time as necessary. 3. The advantages of the machine accounting units were: facilitation of increased business volume, reduction and simplification of extensive clerical detail, and provision of information which was not available by mama]. nethods. h. The study of accounting and mathuatics was essential for supervisors and machine operators. Typewriting skill was required of key-punch operators. In addition to concluding that automation did not replace accountants, Edwards stated tint due to the advantages of machine accounting, it will be used more and more extensively and have an increasing influence on the teaching of accounting. He further recs-ended that the study be utilised in improving the instruction in bookkeeping and accounting at the high school and college levels. Eleni.2 fra his findings also made similar recomndations for the inclusion of electronic data processing courses in the business curriculum. lfiolvin Lloyd Edwards, “The street of Ante-nation .1. Accounting Jobs“ (unpublished Ph.D. dissertation, Graduate College, University of Oklah-Is, Herman, 1959) . 21s. sieni, ”moctrouic nata Processing and Its Implications for the Collegiate Minus Curricula“ (unpublished Ph.D. dissertation, The one state unversity, Columbus, 1959). w...— , _— I 4' ‘\' \Jlf. ’il'lllllli'l't III I. 28 Matt1 made a comarison of manual and mechanized procedures in selected accounting areas by comparing naterial fru eight accounting textbooks with data on sinilar tepics obtained fru interviews with peuennel in twenty-five Indiana businesses successfully using mechanized accounting procedures. In his conclusions for accounting instruction Sweatt stated that data processing concepts are an integral part of accounting procedures in nechanized installations. Therefore, he stated that accounting s’mdents needed both an understanding of integrated data processing with its related concepts and general accounting concepts which are currently taught. M The literature indicated that one of the accepted purposes of a calamity college was to provide terminal. courses and programs designed to equip those seeking employment with adequate skills for the Job market. It was further implied that terminal courses and programs should be designed by considering the purposes and needs of the interested parties; the student, the institution, and the world of work. Although there appeared to be a paucity of literature directly related to the vocational education of technical accountants at the annuity college level, various writers have indirectly alluded to this possible need in articles and studies relating to the training of bookkeepers and accountants in high school or baccalaureate degree courses and programs respectively. liesil 0. aweatt, I'ceucept Changes Related to the Hechausation of Accounting I’rocedures'l ( lished £11.13. dissertation, Indiana University, Bloomington, 1962 . ‘ —. were: six, “gag” Wchnic CHAPTER III RESEARCH PROCEIIJRE AND METHODOLOGY The study was conceptualized as containing four tasks. They 1. 2. 3. h. Surveying the durable goods mamfacturing industry's current and projected need for technical accountants. Conducting interviews with technical accountants to identify their accounting-type job activities. Analyzing interview responses to establish a list of accounting activities performed. Translating Job data into a set of ”training-need“ criteria that could be used to assist in appraising the adequacy of the accounting courses in a post-high school terminal accounting program. GENERAL PROCEIURES TASK I - A Survey of Current and Projected Need for Technical Accountants A mail questionnaire was used to determine (a) the numbers engaged in accounting-type work for which a baccalaureate degree was not a basic requirement for employment, and (b) the projected need for technically trained non-degree accountants. Population and Sample. The original population included 178 firms (see Appendix 0) listed as manufacturers of durable goods in the tri-county 29 nu IC hmt: local 1 tasty. distri‘ of bus not be notto We Varied 13.00: 31th, i.“ “tr-o; “lie, 30 area according to the Hichigan Manufacturers Yearbook} Industrial nix-estery of Metropolitan lensing,2 Lansing Cannnity College,3 and the local telephone books.h However, investigation by telephone conversations and personal contacts disqualified fifty-six of the original fins; twenty-two were manufacturers of non-durable goods; fourteen were distributors and non-manufacturers of durable goods; eight had gone out of business; seven were recorded under two or more names; three could not be located due to moving or improper addresses; and two requested not to be part of the study. Thus, the final population was 122 firms (as of March, 1966) wacturing durable goods in the tri-county area.5 These firms varied in size, according to the nunbers of employees, from one to 13,000. Develgmnt g; _th_g Instrunent. A questionnaire that could be used with a dual function (one that could be used as a mail questionnaire or as an interview guide) was selected as the nest expedient to obtain the desired alienation. 1n. ecto of Hichi Manufacturers: 196; (12th Edition rundown urerfingshing—Mpany, 1 5). pp. h6-335. 2mm]. Directon of Hetrmlitan Ians (Lansing: Chamber of Caneree of Greater-lensing. May, 1%; 5, pp. 1-17. 3Tri—0ounti Occu tional Survey (Lansing: Lansing Guanity “11“. m“, 1 . e has. an pg; Telephgne' Directog for m 52 (Lansing: Hichigan Be Telephone Compaq, March, 1933;. 58.. Appendix 0, pp. 175-179. doctor tease Glenn rmpond 31 Prior to the construction of the questionnaire, a number of survey instruents were studied, in particular the one used in the Tri-Ccunty Occupational Survey.)- After nan: drafts and conferences with the doctoral cmittee, faculty, and others, a questionnaire2 was designed to secure infernation to answer four najor questions. a. How many bookkeepers and accountants were now employed in the tri-county area? b. If need be, how nary of these bookkeepers and accountants could be replaced by a graduate of a post-high school non-baccalaureate educational pregran‘! c. “at is the projected need for tochnicale trained non-baccalaureate degree acc ountants? d. Would such technical accountants be prenotable? he instrnent was then field tested in fifteen firms of which eleven responded. After a personal interview with each of the eleven respondents liner changes were nude in the wording and the feast. Procedure. In May, 1966, a nernative survey (nail questionnaire) was conducted with presidents, owners, or wagers of the 122 firns nanufacturing durable goods in the tri-county area. The gesticnnaire was nailed to the top local administrative officer of each fin. These officers were selected as the individuals who would best know past, current, and future needs for their fir-s. In some cases where the fin was decentralised, the top adninistrative officer had the personnel J“hi-county Occupational hrvey, 92. git. 28.. Appendix A, pp. 171-173. the fol] Fit] lea: aduz' ace: the: cen- the: Pro: Lab by 1 the: fin: the. 32 director or controller caplete the questionnaire. 1 mail follow-up of non-respondents was conducted two weeks after the initial mailing, and a second follow-up ten days later. The second follow-up was conducted by one of two methods; (1) personal interviews with the top administrative officers of those firms employing more than twenty-five employees , and (2) telephone interviews with employers of less than twenty-five unplcye es . The telephone conversations with administrators of smaller firms indicated that they had not completed the questionnaire because they did not now, or expect to, employ an accountant or technical accountant due to the size of the firm, less than twenty-five employees . filth the additional telephone and personal interviews a 100 per cent response was cbta Lned frau the 122-firm sample. M. The data from the questionnaires were coded and double- checked for the data processing. The information was keypunched on data processing cards and verified in the mchigan State University Gcnputor laboratory. The procedure of counting and sorting was done mechanically by mchigan State University' s 3600 Ihta control computer. Tables were then constructed frau the data in (1) its entirety, and (2) by size of fin. Wes and conclusions were then made fraa an analysis of these tables and charts. TASK II - onduct Interviews with Technical Accountants to Ident their Accounting Job Activities Personal interviews were used to determine what accounting activities were performed by technical accountants. “mmmenmnnm mmmmmw\ mm 3.!!! 33 We The population included 222 technical accountants and beekheporsl in seventy-one firms as indicated by the owners or managers as fulfilling four basic requisites: (1) They were employed full-time as a technical accountant. Sue had other tasks but accounting was the primary position. (2) They had been employed as an accountant a minim of one year. (3) They were in positions for which a post-high school accounting education was necessary, but for which a baccalaureate degree was not a prerequisite. Sons of those classified as technical accountants did have a baccalaureate degree but the administrators reiterated that it was not a Job requirement. (1;) The administrators considered these technical accountants pronotable and did not consider them in a static position replaceable by nechanical equipment. 23;. he name of the technical accountants, or in larger firm the position umber, was obtained fro. the firm's administrative officer or his delegate for each of these 222 accountants and bookkeepers meeting the four above requisites. me name or position number of each technical accountant was then stratified according to cupany sise.2 nu stratified names or position numbers were numbered and randomly selected using a table of randon digits.3 1Deternined in Task I, see Table 5. 2dummies were categorized according to number of employees. For stratification purposes the following owingmgroufings of cupanies by number of employees were used: (a) l thr (b) 50 through 99, (c) 100 through 21:9, (d) 250 through 71:9, and (e3 over 750. 391111, a. DuBois, g Introductiento holo cal sun___;___c1» (low York: Harper a Row, Publishers, —_—9357'pp11"""“""”§3-97." hdtl find“ that! deg.“ “t1“ 3h Onelnndredandfoureftheserandulystratifiedaecountants and boohhepers were chosen. live of the selected interviewees later hadtebe invalidatedfervarious reasons. Adlai-Square Testwusused todeteunime goodness effitefthetetalsnpleandefthoninety-une selected responabnts.1 The sample was accepted with the probability thatIOte90percentefthetimssuchadistributioncouldoccurwhen randnly selected. hevelggnt g_f__th_g_Instrumont. To develop a dual purpose (nail and structured interview) «estimate consisting of accounting-type activities that could be perfoned by technical accountants the following set of procedures was used: (1) analysis of printed uterials, (2) review by jury panel, and (3) pro-test of interview acetic-moire. l. m _o_f_ mg materials. Accounting books and refer- eases, theses, and disserta‘flensz were analysed to obtain a list of accounting units or activities that usually could be taught during the first two years of college or in a thy or business college. These activities were grouped under nine njor functions and a prelinimary questionnaire was constructed. The nine functions were: licking Financial Reports and Schedules Analysing Financial Statements and schedules hintaining lodgers Iaintaindng Journals 18cc Appendix c, p. 193. a,” mourn: n, pp. 180-182. listed 1331411 (no a; (I) up °f loo “um m.“ ‘ 35 Preparing and Initiating late Recording or Posting Date linking and Using Working Papers lea-classified Maintaining, Analysing, or Performing Activities Doing Specific Hathematical Computation 2. mama. The questionnaire forest and the listed accounting activities were reviewed by selected accounting instructors, certified public accountants, and accounting supervisors (see Appendix 3) for possible additions, deletions, or changes. The msfiers of the Jury panel were selected as individuals who understood: (1) the field of accounting, (2) the educational aspects for the training of accountants, and (3) the cmpleynent requirements of fins manufacturing 'mauegeede. Twosignificantchangesweremadefromthejury‘s suggestions. They were: (1) an increase in the number of accounting activities listed and (2) the addition of a section relating to how often activities were performed. The panel felt employers were nest concerned that newly cnpleyed technical accounting personnel be able to function on the most often performed activities without considerable additional training. All suggestions were presented to each member prior to final approval and the mestionnairel was prepared for pro-testing. 3. Pro-test g; interview gestionnire. A pro-test of the revised structured interview gestionnaire was conducted with ten lsee Appendix 1!, pp. 18h-192. 36 accountants who would qualify as technical accountants. They were graduates of either a commnity or business college accounting program of one or two years in length 3 they were in positions that if replacement were necessary a non-baccalaureate degree accountant could qualify; they had been deployed in the accounting field a minimum of one year and according to management they were pronotable. The trial interviews were conducted at times conducive to the intern viewees' work schedules. The interview coauuents were constructive and in particular one of the early interviewees suggested the observing of samples of work performed by such an accountant. This comment proved to be a highly valuable suggestion. This was an informal way of verifying answers. flthough it was not part of this study to employ either Job descriptions or supervisor interviews to obtain information regarding the activities performed by technical accountants, it was attempted in order to obtain additional knowledge available about technical accounting posi- tions. Ho statistical analysis was done on job descriptions but from the writer's eaperiencel it was observed that the Job descriptions surveyed were incomplete and/or outdated. The supervisor, unless recently promoted, sensed somewhat rnnoved frm the actual Job activities and had a general idea of what was done but had forgotten or overlooked some specific tasks performed. The supervisors tended to (suit detailed activities such as the construction and use of working papers, posting to lodgers, and verification of results in the normal accounting cycle. They, at times, lmeven years as a college accounting professor, two years as an accountant, one year as an accounting supervisor, two years as a cost accounting consultant, and five years teaching personnel management. d» I report me I I1» fun the at l 1th can: inten like 1 inter int“. “1 a my 1 “rid hoes {cop hat to“: ‘5'”. —. _ Vs. ewe—e “‘ .' ’7 _"~-.'- 2..” ' '.a..._.r- can“ ~7 37 also overlooked sons non-frequent reporting activities and special reports as sales teas and supporting schedules. it the conclusion of the pro-test trials s- changes in wording were made to clarify the meaning and intonation desired. Procedure. Clearance to arrange aninterviewwithths randomly selected accountant or bookkeeper, technical accountant, was obtained from the fin's administrative officer or his delegate. In most cases the officer made the interview arrangements at a convenient time, at a location conducive fer interviewing and furnished the requested non- confidential sample materials.) In the balance of the cases the interviewer was referred directly to the accountant or bookheeper to mks the necessary arrangements. it the suggestion of the employers, all except eight of the interviews were conducted during working hours. he remaining eight interviews were conducted at the technical acceuntant's convenience, usuallydurimgthe evening. Theaveragc requiredtimeefallinterviews was slightly more than an hour. hen samples of the technical accountant's work were available, they were scanned before or after the interview and used to assist in the verification of the interview answers or to pose further questions if necessary. Additional verification of answers was attempted by leaving a copy of the interview questionnaire with the technical accountant. The duplicate second questionnaire (coded by company and accountant) was tebe coupletedandmailedoneweek later. lie interviewwas considered complete until the second questiunaire was received. 38 Upon receipt of the duplicate questionnaire, an analysis was made of the interview and the questionnaire answers. Any discrepancies were then discussed by telephone with the technical accountant. Corrections were made and the interview was considered complete. TASK III - wmterview Responses to Establish a List of Accounting Job Activities” Responses from the ninety-nine verified interviews with technical accountants were analyzed in total and by size of firm to determine: (1) the preportion and frequency with which technical accountants performd each of the 250 selected accounting activities classified under nine functions, and (2) whether there were clusters of accounting activities performed by technical accountants according to the size of fine. No attempt was made to ascertain the time involved to perform~ an activity or to measure the couplezity of performing such an'activity. For the purposes of this investigation the importance of an activity was based on the proportion of technical accountants performing the activity and the frequency with which it was performed. The data from the interviews were coded and double-checked for data processing. The infomation was keypunched on data processing cards and verified in the Michigan State University Computer Laboratory. The procedure of counting, sorting, and statistical analysis was perfomed mechanically by Michigan State University's 3600 Data Control Gmputer (Version 1.01 Act). Tables were constructed from the data in total and by size of firm. Summaries and conclusions were then made frau an analysis of these tables. llllll'l 39 52mg. 2:. «_ta _Ig 2939;. when the accounting activities were considered in total, a nunerical and percentile caparison was wade to doternine the proportion of technical accountants perfoming an activity and the frequency with which it was performed. The nnnorical cuparison was employed prinrily to determine which of the activities were porforned nest often by technical accountants while per cent was enployed to show proportion performing an activity at various frequencies - weekly, monthly, quarterly, mm, or my} In order to sinplify analysis of the 250 selected accounting-typo activities, they were classified into nine porfornanco functions . These functions were: Making Financial Reports and Schedules Analyzing Financial State-outs and Schedules Maintaining Iadgers Maintaining Journals Preparing and Initiating Eta Recording or Posting Jhta Making and Using Working Papers Non-Classified Maintaining, Analysing, or Porforning Activities Doing ancific lhthnatical Computations Specific analyses were nude of these 250 activities by function in Chapter V. 1.See Appendix J, pp. 196-207. an.“ x 5% .I'I' I'll! .,~r “ra':— {Vt-— ~ If. ’: ‘” .~~ .v ho H gig _e_f; 2:23. The size of fins categories were established according to the ”or of employees on the payroll as of January 1, 1966. For the purposes of this study, five size of fire categories were selected; (1) l—h9 employees, (2) 50-99 employees, (3) loo-21.9 employees, (h) 250-?” enployeos, and (5) 750 or noro omloyeos. The upper and lower linits for each size of fire category were established so future conparisons can be nude as data becomes available fro other sources.1 Analysos were ends, by sins of fire, of the 250 accounting-typo activities in the nine porfornance functions to ascertain whether there were clusters of activities porforned by technical accountants in any particular size of fire. Analyses sinilar to those performed with the activities ”in total” were employed to analyze the proportion of the activi ties performed by technical accountants in each of the five siao of fire categories. The morical figures were used to obtain proportions and percentages to dotornino proportional fluctuations. In addition to the merical and percentile evaluations, two ml]. hypothosos were tested by statistical nothods to assist in the determi- nation of any variation fron the non that could indicate possible deviations and hence clusters of activities relevant to a particular siso of fire classification. Chi-Square was used to test the null hypothesis, I'lo significant difference exists in the proportion of technical accountants porforning an accounting activity when eenpared by firm size.” In. United Statos Chanbor of 0mm and the United States Bureau of Census smile data by fire sizes that could be horisatally consolidated for nunoricsl cosparisons. _— ~~; —;— m, A rejection level at the .05 level of significance was used. In order to assist in evaluating importance of a particular activity within an accounting function, the second null hypothesis, "Ho significant difference exists between the rank order of the accounting activities in each selected function as performed by technical accountants in the various size firms,“ was tested using Kendall's Coefficient of Concordance with the correction factor for ties and Chi- Square.1 The .02 level of significance was used as the rejection level. TASK IV - Translating Job Ihta into a Set of Criteria That Could Be Used to Assist in Appraising the Adamo; of the Accounting Courses in a Post-mg School Terminal Accoanflg Man Four analyses were nado on the 250 accounting-type activities investigated in this study to ascertain a cut-off point or line of discretion as to which activities should be included on or excluded from a criterion list that could be used to assist in appraising the adequacy of the accounting courses in a post-high school terninal accounting program. The four analyses used to establish the line of discretion on accounting activities performed by technical accountants were: (1) the proportion of technical accountants performing each activity, (2) the rank order, by performance, of the activities in total and by size of fire, (3) the frequency of performance for each activity, and (h) the universality of performance of each activity by technical accountants in all size of firm categories. lsidney Siegel, Nomanetric Statistics £25 the Behavioral Sciences, (New York: McGraw-Hill Book Company, Inc. , 19335, p. 231;. mm» W activity. An analysis of all the activities perfonod by 50 per cent, 33 per cent, 25 per cent, and 20 per cent of the technical accountants revealed that pertinent activities below each of these possible cutoff points (line of discretion) would have been flitted. 11“ this analysis it was decided to include all activities ' porfomod by more than one out of five (20 per cent) of the technical accountants with other analyses determining which of the renaining activities should have been also included. gag 2&1; g_f, activities. An analysis of the rank order of the activities was sade in total and by size of firm to assist in the support establishment of a line of discretion. The selected line of discretion included those activities ranked, by the proportion perfomd by technical «ountants, in the top 50 percentile. Activities that ruined lower than the top 50 percentile and were performed by less than 20 per cent of the technical accountants were included in the list of cvalnative criteria if they were ranked significantlyl higher in a particular size of fire when cuparod to the rank in total for those activities. lagoon: 2; arforeanco. . An analysis was node of those activities performed by less than one out of five technical accountants to determine how often they were performed. These activities porfoned prinarily aonthly or nore often were deemed essential to be included on a list for possible evaluation of a tor-incl accounting progran. Imam: higher was set at one-third of the ranks within a particular size of fin category. Universality mrfornmnce. An analysis was made to determine which activities were performed in each size of firm category and therefore could be included on the selected list of accounting criteria to evalnato a terminal accounting program for firms manufacturing durable goods. bocial consideration was given to activities performed prinarily in firms with 100 to 71:9 enployees because firms in that ciao category did not employ outside data processing services nor did they have in- sorvico training programs. lbsrefore, technical accountants onployed by fiat sire of firm would have to be able to perform these accounting acfivitics with limited assistance. 2931. After the four analyses were made on the 250 accounting activities performed by technical «constants in firms manufacturing durable goods, a line of discretion was drawn to include all activities performed by. at least one out of eight technical accountants. _ w ..r -ww“.$".¢iw:"-l .1. . ‘ CHAPTER N m rmmos, use I CURRENT AND PROJECTm BELOW STATUS OF TMHNICAL ACCOUNTANTS IN THE TRI-COUNTI AREA One of the purposes of this investigation was to determine the current and projected need for technical accountants. In order to determine both the current and the projected need the following points had to be investigated: 1. Were there employees performing accounting activities for which post-high school training was a requisite but a baccalaureate degree was not a prerequisite for mloyment‘! 2. How man of' those employees (technical accountants) were there in the Tri-County area? 3. What mloyment projection will there be for technical accountants in the future? 1;. Will these technical accountants be in non-pronotable positions and will they be subject to replacement by mechanized equipuent? Qo_e_s_ _Th_e_rg m 5 Technical Accounting Position? An accounting position was described as "technical" if it was one for: which training beyond high school was a requisite but for which a baccalaureate degree was not a prerequisite. The findings relevant to hh 15 the presence of the technical accounting position, and the subpoints of these findings, are interwoven with the findings for these questions: 1. How does the employment trend of these positions compare with that of the total werk force in the M4: ty area and also that of the total accountancy-oriented work force? 2; How many technical accounting positions are there in the Tri-County area? 3. What is the projected future of these positions? _Past W Me Past employment in the Tri-County area was analyzed for the five- year period that commenced on December 31, 1960 and ended on Decmber 31, 1965. For this period the trends for three populations were considered: (1) the total over-all employment (2) the total accountants and bookkeepors (accountancy-oriented), and (3) the technical accountants. Over-all trend 9; 221;; {9393. Table 1 indicates that for the five-year period preceding this investigation, the tri-county area enpleynent status showed a gain in the amber of durable goods manufacturing firms with increased employment. 01' the 122 firms in the initial population: . . . 6 of 10 showed an increase in work force. . . . 3 of 10 disclosed a reduction in work force. . . . l of 10 indicated no change in work force. Approximately thirty per cent of the smallest firms (under fifty uployees) showed a decline in enploynent. Of the thirty-two firms in total showing a decline, seven out of ten had less than fifty employees. 1'Refers to the total accountants, technical accountants, and bookkeepers employed in the Tri-County area. 116 TABLE]. INCREASE/DECREASE IN TOTAL EMPLOYMENT SINCE 1960 IN FIRMS MANUFACTURING DURABLE GOODS IN THE TRI-COUNTY AREA BY TOTAL AND SIZE OF FIRM Relationship» by Number of Firms No Cannot Increase Change Decrease Determine Total Classification _rotal 39.1.2 N 71; 11. 32 2 122 x" 60.7 11.5 26.2 1.6 100.0 Size 9_ Firm by O 68 1- 1.9 N 1.0 11 23 1 75 S 53.3 1b.? 30.7 1.3 100.0 50- 99 N 15 1 h 1 21 % 71.1. u.8 19.0 h.8 100.0 loo-21.9 N 11 2 2 15 i 73.3 13.3 13.3 190.0 250-710 N 6 1 7 x 85.7 1h.3 100.0 750 or more 2 2 h x 50.0 50.0 100.0 *The "cannot determine" column was primarily marked by those firms unable to locate the exact 1960 figures due to a change in the information retrieval procedure or a change in the recording systqn which made unifornk comparison difficult. “Read percentages horizontally. h? )hnagers of the smaller firms implied that the reduction was due to mechanization, failing to compete profitably with larger firms, and individual owners gradually phasing out the business. Two of the largest firms, 750 employees or more, indicated that their reduction was due to two nonemlated causes; a temporary shutdown and better production efficiency. M 9; accountancy-oriented 32;]; 33-2. 1. Increase/Decrease analysis. For the five-year period preceding lbcelber, 1965 , forty-two of the 122 durable goods manufacturing fins in this salple showed an increase in employment of accountants and bookkeepers as shown by Table 2 . hiring the sane period twenty-one of the firms revealed a reduction of such enployees. 0f the twenty-one fires that showed a reduction in the uployment ef accountants and bookkeepers, sixteen had less than fifty employees. Of those firms that indicated a reduction in the employment of accountants and bookkeepers 76.1 per cent were in the smallest-sized category-«one through forty-nine employees. There were fifteen, or 35.7 per cent, of the forty-two firms in the same size category that showed an increase. The number of firms that indicated a reduction of all-inclusive accountant positions also showed an increase in the use of canercial accounting services. The two snallest categories, one through forty-nine or fifty through ninety-nine employees, were the only categories of firms that employed a cumercial accounting service for accounting functions other than auditing. lfn fin "hie 118 TABLEZ INCREASE/ DECREASE IN ACCOUNTANCY-ORIENTED BELOW SINCE 1960 IN FIRMS MANUFACTURING HIRABLE GmDS IN THE TRI-COUNTI AREA BI TOTAL AND SIZE OF FIRM I Relation:hip by Number of Firms Cannot" Increase Change Decrease Intermins Total Classification ___.T°tal .8252}: N 1.2 55 21 h 122 at“ 314.1. 1.5.1 17.2 3.3 100.0 8 e g; Firs by 21oz!” 1- 1:9 N 15 m. 16 7S 1 20.0 58.7 21.3 100.0 50- 99 N 10 9 1 1 21 x h7.6 1.2.8 h.8 h.8 100.0 lOO-2h9 N 9 2 3 1 15 x 60.0 13.3 20.0 6.7 100.0 250-7119 N S 2 7 s 71.1. 28.6 100.0 750 or more N 3 1 h 1 75.0 25.0 100.0 *The "cannot determine" column was primrily marked by those firns unable to locate the exact 1960 figures due to a change in the informatics) retrieval procedure or a change in the recording systole which made unifors cuparison difficult. “Read percentages horizontally. - "‘5‘"! -"- 3" Elsi—4“.S-&>ku-m w.;.nk- -. . .~ 1:9 2. fiunerical elployment analysis. Table 3 shows that during the five-year period considered in this numerical employment analysis, there was a 28.1 per cent increase in the total number of accountancy-oriented positions in the Tri-County area. The merical increase of sixty-three accountants and bookkeepers in the firms nanufacturing durable goods was prinsrily calposed of firms in the three middle-sized categories: (1) 50-99 employees, (2) loo-2N9 elpleyees, and (3) 250-7h9 elployees. Those firms also had shown the larger numbers of increases in Table 2. The sseJlest and the largest-sizedccategories portrayed the lamest nanerical and percentage increases. Technical accountant m. l. Increase/Decrease Analysis. In review, the technical accountant was viewed as an individual primarily employed to perform accounting activities. Also, according to his employer, he would now need sue post-high school accounting training but for which a baccalaureate degree was not a requisite. is portrayed in Table h, thirty-six of the 122 fines, or allost 30 per cent, indicated an increase in technical accountant enplcynent and only sixteen, or 13 per cent, showed a decrease. The decrease of technical accountants in the sixteen firm was prinrily euprised of fifteen cupanies who employed less than fifty workers. The percentage of fins that reported increases in technical accountant positions became respectively greater with each larger sized category. So TABLE 3 MIC“. mmnm CCEPARISW OF AOCWNTANCI—QRIEM‘ED POSITIONS SINCE 1960 IN THE TRI-COUNTI AREA 31' TOTAL AND SIZE OF rm 10 d in Net Number Per Cent Classification 1960 1965 Increase Increase SiseofliraBy‘ holes-g, o. w 22 25 3 13.6 50- 99 2o 36 16 80.0 - loos-2&9 to SS 15 37.5 250-716 21 1:7 26 123.8 ISO-er More E2 1:]; .3 _2_._5- Total 221 281: 63 28.1 I! 1.l'n'lllll.l f it] , 51 TABLE I; INCREASE/DECREASE IN TECHNICAL ACCOUNTANT EMPLOYMENT SINCE 1960 IN FIRMS MANUFACTURING HJRABLE GOODS IN THE TRI-COUNTY AREA BY TOTAL AND SIZE OF FIRM Relationship by Number of Finns No Cannot Classification Increase Change Decrease Determine Total Total Sample N** 36 67 16 3 122 3 29.5 Sh.9 13.1 2.5 100.0 Size 9_i_‘_ Firm by 122102.33 l- h9 N 1h N6 15 75 S 18.7 61.3 20.0 100.0 50- 99 ‘ N 8 12 1 21 I 38.1 57.1 h.8 100.0 loo-2&9 N 7 8 15 z b6.7 53.3 100.0 250-7h9 N h l 2 7 $ 57.1 1h.3 28.6 100.0 750 or more 3 l h S 75.0 25.0 100.0 ‘The "cannot determine" column was primarily marked by those firms unable to locate the exact 1960 figures due to a change in the information retrieval procedure or a change in the recording system which made uniform cauparison difficult. *"Read percentages horizontally. Be: te< Orr 52 When those positions for which no collegiate training was required were deleted frm the all-inclusive accountancy-oriented positions, except for the mallest cnpanies, few firms showed a reduction in the employment of accountants or accounting technicians. 2. Numerical Mploymont Analysis. As indicated by- Table 5, technical accountant positions increased from 170 to 222 during the five years preceding December, 1965. This increase of fifty-two positions was a 30.6 per cent increase over the 1960 figure. The mllest and the largest sized firm categories showed the least numerical and percentile gain. The greatest gains in technical accounting employment were in firms from the middle three categories of employees, those with fifty to 7119 employees. 3. Past Supply Analysis. Due to a terminology problem this section separates technical accountants into two categories: (1) technical accountants and (2) technical bookkeepers. This was necessary so as not to confuse the comparw officers in supplying the answers. Some of the firms associated an accountant with a baccalaureate degree and anyone with less formal training as a bookkeeper. Other firms associated those with a high school diploma as bookkeepers and all these with more formal education beyond high school were called accountants. Therefore, by using both terms the employers felt confident of their responses and the desired information was obtained. Table 6 helps to bear out this confusion in terminolog. “Scarcity“ or 'adeqaacy' of lltechnical accountants“ or ”technical bookkeepers' appears to relate to a firm's definition of "accountant" or 'boekkeeper." The larger firms tended to indicate an adequate 53 TABLE 5 NUMERICAL.EMPDOIMENT COMPARISON OF'TECHNICAL.NCCOUNTANTS SINCE 1960 IN THE TRIéCOUNTI'AREl BI'TOTAL.AND SIZE‘OF FIRM? 319107“ In Not Number Per Cent Classification I 1960 1965 Increase Increase Size of Firm By tel-nu 0- &9 21 23 2 9.5 50- 99 20 36 16 80.0 . loo-21.9 28 39 11 39.3 250-7h9 16 33 17 106.3 750-” More 85 91 6 7 .1 Total 170 222 52 30.6 '1’, #4 l '3 hav Yer: 196; 5h supply of technical bookkeepers but a scarcity of technical accountants. TART-I6 PAST SUPPLI OF TEHNICAL ACCWHANTS AND 303.333 IN THE mI-COUNTI AREA [ Man-Mum lo Classification ' Adequate Scarce Surplus Reference Technical Accountants N 21 m. l 5 t’ 29.6 62.0 l.h 7.0 Technical Bookkeepers I 1:6 18 S 2 1 6h.8 25.h 7.0 2.8 *Read percentages horizontally The interviewer discussed this with officers fru forty-seven of the seventy-one fins and it appeared unanimous that if a firm called their technical accountant employees "accountants'l they marked "bookkeepers' as adequate and vice-verse. Therefore, if that were the case on all seventy-one firms, sixty-two would then have indicated a scarcity in the locating of technical accountants for employment. Projected m may £21; Technical Accountants The administrative officers of the seventy-one firms, either having had, now having, or anticipating having technical accountants, were asked to project their need for these positions through December, 1969. 55 Anticimted M by firm. 0f the seventy-one firms, as indicated by Table 7, forty-seven, 66.2 per cent, anticipate an increase in technical accountant positions. Only one indicated a decrease. However, twenty-one anticipate no change and two were unable to predict their technical accountant employment for the next four years. Of the twenty-one fines that indicated no change in technical accountant positions for the next four years twenty were in the We smallest categories. Thirteen of those were in the category of one to forty-nine employees and seven were in the fifty to ninety-nine employee category. Anticimted m by number g_f_'_ positions. Figure 1 shows the anticipated number of technical accountants needed by durable goods manufacturing firms in the Tri-County area until 1970 to be 208 or fifty-two per year, calculated as follows: fl-I+I(T) N=68+h(35) n-208 N - Anticipated need for technical accountants to 1970. I '- Anticipated increase in technical accountants by 1970. T . Anmal turnover of technical accountants. I I' Number of years. This indicates that prior to 1970 there is a need for an additional mpply of technical accountants almost as great (914%) as the present work force of 222. These figures could be conservative as the formula used was based on a constant yearly change and not on the projected increase in technical accountant owloyment which would also affect turnover. TABLE 7 ANTICIPATED CHANGES IN Tim-{NICAL ACCOUNTING EMPLOYMENT TO 1970 IN FIRMS MANUFACTURING DURABLE GOODS IN THE TRI-COUNTY AREA BY TOTAL AND SIZE OF FIRM Relationship by Nmnber of Firms No Cannot Classification Increase Change Decrease Determine Total _Total m N 117 21 1 2 71 5* 66.2 29.6 1.1. 2.8 100.0 Size 9.1; Firm by m l- 119 N 12 13 l 26 x 116.2 50.0 3.8 100.0 SO- 99 N 13 7 20 s 65.0 35.0 100.0 100-2h9 N 12 1 1 111 x 85.7 7.1 7.2 100.0 250-7149 N 7 7 $ 100.0 100.0 750 or more N 3 1 h S 75.0 25.0 100.0 *Read percentages horizontally Number Technical Accountants 57 FIGURE 1 CCMPARISON OF CURRENT AND ADDITIONAL PROJECTED NEED FOR TECHNICAL ACCOUNTANTS TO 1970 FOR FIRMS MANUFACTURING IIIRABLE GOODS IN THE TRI-COUNTY AREA 300 275 250 225 200 175 150 125 100 75 SO 25 U see mosseseOe to see eeOeOeseO Technical Technical Accountant Accountant Work Force Need to 1970 Technical AssouMant work Force January, 1966 (222) Estimated Number of 1966 Technical Accountants Ruining in that Position in 1970 Anticipated Increase in Technical Accountants by 1970 (68) Anticipated Four-Tear Turnover of Technical Accountants (1110) -7 . .:- .. V .9". ww.~,fuwronm '3’??? ~.' 58 Eloubilitz 2; Technical goonntants All of the seventy-one firms, either having had or anticipating having positions for which a technical accountant could qualify, did state their willingness to employ such a person. However, at times a technical accountant could be competing with a baccalaureate degree accountant for the same position and the best one would naturally be given preference. Considered under employability were three questions: (1) Would you prefer a specially or a generally trained technical accountant? (2) Would you prmuote a technical accountant? (3) If a technical accountant is prmaotable, to what level would prauotion be possible? M trainedl 933; M trained2 technical accountant. Table 8 shows that five out of seven firms preferred a technical accountant specially trained for firms manufacturing durable goods. Twelve (1 in 6) of the firms indicated that they did not prefer the technical accountant specially trained for manufacturing of durable goods over the technical accountant regularly trained in our post-high school institutions. At the same time, ten of the firms were unsure or hesitant to answer the question. The smaller firms with no facilities for in-service training 1Refers to a post-high school technical accounting training program for a specific industry. 2Refers to a post-high school technical accounting training prepare applicable to all industries. S9 preferred the technical accountant specifically trained for their immatry. Of those fins having less than one hundred uployees, slightly over 78 per cent preferred the specially trained technical accountant. Fifteen per cent of those firms with under fifty employees were unsure . TABLES muss T0 MIDI SPECIALL!’ TRAINS!) OVER (SMALL! TRAINED TECHNICAL ACCOUNTANTS IN TOTAL AND BY SIZE OF FIRM Fire Begun” by Number of naployeee 1- 1:9 50- 99 loo-21.9 250-719 ”7331-. Total Response _ - WT— Ice 20 76.9 16 80.0 6 1.2.8 I. 57.1 3 75.0 £9 69.0 lo 2 7.7 2 10.0 h 28.6 3 132.9 1 25.0 12 16.9 Unsure 1; 15.1. 2 10.0 h 28.6 10 1h.l Total 26 100.0 20 100.0 11: 190.0 7 100.0 1: 100.0 71 100.0 *Bead percentages vertically The firms with one hundred or more emloyees also favored those technically trained for the industry but to a lesser degree. 0f the twenty-five firms in this category, 52 per cent preferred the specially trained technical accountant and 32 per cent preferred the regularly trained while 16 per cent were unsure. Prmotabilitz gt; technical accountants. As indicated by Table 9, fifty of the seventy-one firms would rate technical accountants as pruotable while fourteen firms were unsure . Seven firms stated that _ innw 7’! " , ‘ g _‘f‘ ....... .. a... a..' L»‘21.~.< 3 ._*h. V; -«-‘ — PM? the: 'de they would not be able to pro-etc a technical accountant. 1131.39 MOTABILITI OF TNHNIGAL ACCOUNTANTS IN TOTAL AND BY SIZE OF FIRE Firm Responses by Number of hployees ‘ _ a 75.0— 1- h9 1 So- 99 [MO-21:9 250-719 or More Total Response pfijnx [Hz '11:! [11% xx Yes 15 57.7 18 90.0 7 50.0 6 85.7 h100.0 50 70.1. Unsure 5 19.2 1 5.0 7 50.0 ’1 11..3 1h 19.7 Total 26100.0 20100.0 1h100.0 7100.0 h100.0 71 100.0 *flead percentages vertically The seven fins where promotion was not possible were single proprietorships or partnerships too small to have a supervisor or a fsnily owned business when hiring relatives was practiced. Six of these had less than fifty employees and all seven had less than one hundred. _Lglel g; Emotabili 1° Table 9 indicated that in fifty of the seventy-one firms technical accountants were pruotable. Table 10 then portrays the level of proeotability within those fifty fins . First-line supervisionl leads the list with twenty of the fifty lhefecrs to the first position of prenotability where responsi- bility for activities of others is experienced, such as assistant supervisor, accounts receivable supervisor, etc. TABLE 10 * LEVEL 0? P80011331?! PCB TECHNICAL LOCOUNTANTS IN TOTAL AND BY SIZE OF FIRE Wfl Firm Responses By lumber of hployees Love ‘ ’ 750 ‘ .fl 1419 50-99 100-2h9 250-7119 or llcre Total Prouetability N N S N x N ‘1 H i N S J Supervision $0M Lin 1 6e? 3 16o? 3 hzea 7 117.0 lanaguent l 6.7 h 22.2 2 28.6 3 50.0 1 25.0 ll 22.2 Executive Officer 1 11:3 2 50.0 3 6.0 cannot Predict 2 13.3 5 27.8 1 16.? 1 25.0 9 18.0 “Read percentages vertically 62 firms, or 1.0 per cent, checking this as the promotability level of a technical accountant. Second-line supervision1 was indicated by seven of the fifty firms, or 1h per cent. The management level2 was the praeotional level designated by eleven, or 22 per cent, of the firms, while three indicated the executive level.3 These percentages would have been greater had 18 per cent or nine of the fifty firms been r-a.’ able to predict a promotability level for the technical accountant. The nine firms not being able to make the above prediction 4. indicated that the hesitancy to predict was due to one or more of the following: (1) mergers, (2) being a new firm, (3) a change in procedure, or (14) being too small to anticipate the future. In total forty-one of the fifty fines did indicate a promotability level for technical accountants. The smaller firms tended to have a lower level of prmotability than did the larger firms. 32.”! Past Element anemic. is portrayed by Figure 2 during the five-year period frcn December, 1960 to December, 1965, the total work force in seventy-four of the 122, or 61 per cent of the firms increased. it the same time accountancy-oriented positions and technical accounting 1-Refers to the position where there is responsibility for a unit of work such as accounting supervisor, office supervisor, etc. 2Refers to those positions that assist in the planning and orpdcing of the over-all work load such as assistant controllers, controllers, etc . 3Refers to positions that make policy and policy decisions for a firm such as treasurer, secretary, etc. 63 FIGURE 2 INCREASE/DECREASE COMPARISON OF TRI-COUNTY EMPLOYMENT SINCE 1960 BY FIRMS 7MANUFACTURING DURABLE GOODS Total werk Force Technical Accountant Work Force //////////4 ///////////,,65a W : :12 NWT Total Accountancy-Oriented work Force 3% /////7Mhl 2% . V\\ “* gem ‘ \\\\,, C) 10 20 // N I T l l I I l 1 3O hO SO 60 7O 80 90 100 Percent of Firms Increase 2:33: No Change Decrease Cannot Determine positions also increased in forty-two and thirty-six of the firms respectively; Though accountancyboriented.positions as well as technical accounting positions did not increase in as many firms as did the over- all work force, they both showed approximately a 30 per cent increase. This lesser increase oan'be partially'explained by the use of automated .— equipment. However, during the same period thirtybtwo fines showed a ' decrease in the total work force employment while only'seventeen and sixteen.firms indicated a reduction in total.accountancyhoriented or technical accounting positions respectively; Tables 2 and 1; indicated that most firms showing a decrease in the employment of accountancyhoriented.positions had.fortyhnine or less employees. The lesser reduction in accountancyhoriented and technical accounting positions was partially explained by the increased requirements for financial records and reports. Table 11 portrays the relationships between total accountancyb oriented and technical accounting positions. It can be noted that slightly“more than 75 per cent of all accountancy positions are regarded by the finm's administrative officers as technical accountants. At the same time over 80 per cent of the increase in accountancy-oriented positions during the five-year'period were considered technical accountants . 65 TABLE 11 WWI OF TOTAL ACCWETAMCI-ORM POSITIONS WITH TECHNICAL ACCOUNTANTS DIPLOED IN THE TEE-OW“! ARIA hployed kpleyed let in in Member Per Cent Positions 1960 1965 Increase Increase Accountancy-Oriented“ 221 28!; 63 28.1 Technical Accountants 170 222 52 30.6 Per Cent Technical To Total 76.9 78.2 82.5 *ligures include technical accountants Projected M M: Technical accounting employment was anticipated to increase at least until 1970 in two out of every three firms (Table 7). The net increase in the supply of technical accountants was estimated at fifty-two per year (Appendix H). W 2; technical accountants. Almost 70 per cent of the firms preferred technical accountants specifically trained for their industry (Table 8). Table 9 indicated that fifty of the seventy-one firms would prmote technical accountants and fourteen were CHAPTER V '1'“ FINDINGS, PART II ANALTSIS 0F ACCCUNTING FUNCTIONS AND ACTIVITIES PERFORMED BI TERNICAI. ACCGJNTANTS Two of. the purposes of this investigation were to deterMne: (a) a profile of the accounting activities performed by technical accountants in firms manufacturing durable goods 3 and (b) whether there were clusters of accounting activities performed by technical accountants according to the size of firms.1 The analysis in this chapter attempts to cover those two purposes. In order to determine the accounting activities performed by technical accountants in total and by size of firm, ninetyenine interviews were conducted with accountants and bookkeepers classified by their employers as answering to the description of a technical accountant. m interview questionnairez consisted of 250 accounting activities categorized under nine accounting functions. These functions were: Making Financial Reports and Schedules Analyzing Financial Statements and Schedules Maintaining Ledgers Maintaining Journals J-Refers to the number of employees on the payroll. Five classifications according to size, were used: (a) l-h9, (b) 50-99, (0) lOO-2h9, ((1) 250-719, and (e) 750 and over. 2300 Appendix F, We 18h'192e 66 “Wig-,— or V 67 Preparing and Initiating Data Recording or Posting Data lhking and Using Working Papers Non-Classified Maintaining, Analyzing, or Performing Activities Doing Specific Mathematical Computations Each of the nine functions were covered individually according to the two purposes above and sunnnarized in total at the conclusion of this chapter. FUNCTIONS m Financial Boats and Schedules One of the culminating functions performed by accountants has always been the making of financial reports and schedules for management. In today's econonv another report recipient, the goverment, is also interested in a company's activities and reports. It was the purpose of this section to determine the extent technical accountants participate in the actual making of these schedules and reports. Prgmtion W activity. 01‘ the ninety-nine technical accountants interviewed, ninety-seven made at least one financial report or schedule during the past year. However, Table 12 shows that the most often performed individual activity, in this fimetion, the accounts receivable schedule, was made by only six out of ten (57%) of those technical accountants interviewed. The making of an accounts receivable schedule was closely followed in the proportion of technical accountants performing the various activities in this function with: TABLE 12 68 ACTIVITIES OF MAKING FINANCIAL STATEMENTS AND SCHEDULES PERFORMED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING DURABLE GOODS (IN TOTAL AND BI FREQUENCI 0F PERFORMANCEa) Proportion Performing Activity Total? Monthlyc 03113 Type Statement or Schedule N % N % N 5 Accounts Receivable Schedule 56 56.6 51.. 96.1. 2 3.6 Accounts Payable Schedule 50 50.5 1.8 96.0 2 14.0 Insane Statement 1.8 1.8.5 1.0 83.3 8 16.7 Balance Sheet 115 145.5 3h 75.6 11 214.1: F.I.C.A. Tax Reports 1.5 1.5.5 25 55.5 20 1.1..5 Manufacturing Expense Schedule M. 1.11.11 39 88.6 5 11.11 Cost of Goods Sold Schedule 1.1. 1.1.1. 37 81..1 7 15.9 Employee Withholding Tax Reports hh 1.11.1. 22 50.0 22 50.0 Materials Consumed Schedule 1.2 142.31 27 88.1 5 11.9 Federal Unauployment Cmpensation Tax Raports hl 1.1.1. 3 7.3 38 92.? Cost of Goods Manufactured Schedule 38 38.11 32 814.2 6 15.8 General and Administrative Expense Schedule 37 37.1; 33 89.2 h 10.8 State Unemployment Compensation Tax Reports 37 37.14 6 16.2 31 83.8 Selling Expense Schedule 36 36.1. 31 86.1 5 13.9 State Sales Tax Reports 28 28.3 28 100.0 - - Efficiency Reports 27 27.3 23 85.2 h 1h.8 Production Budget 25 25.3 11. 56.0 11 1111.0 Operating Budget 2h 214.2 8 33.14 16 66.6 Property Tax Reports 21. 234.2 - - 2h 100.0 Cost of Production Statement 23 23.2 17 73.9 6 26.1 Credit Rating Reports 22 22.2 20 90.8 2 9.2 Capital Statuent 22 22.2 11 50.0 11 50.0 Alternative Cost Reports 19 19.2 17 89.5 2 10.5 Consolidated Income Statement 18 18.2 16 88.9 2 11.1 Retained Earnings Statement 18 18.2 5 27.8 13 72.2 Consolidated Balance Sheet 17 17.2 13 76.5 h 23.5 Departmental Statements 15 15.2 lb 93.3 1 6.7 Cash Budget 15 15.2 9 60.0 6 1.0.0 Capital Budget 15 15.2 7 1.6.6 8 53.1. Federal kcise Tax Reports 11: 111.1 1. 28.6 10 71.1. Company Insane Tax Reports 1h 111.1 2 114.3 12 85.7 Making Sales Budgets 13 13.1 7 53.8 6 1.6.2 TABLE 12 (continued) 69 A... Proportion Performing Activity Total QSA Type Statement or Schedule N %A N 1 Source and Application of Funds Statement 12 12.1 5 7 58.3 Cash Flow Statement 11 11.1 6 5 1.5.1. Branch and Division Statements 9 9.1 8 1 11.1 Research and Development Budget 6 6.1 2 h 33.7 aSee Appendix J for more detailed frequency of performance data - weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine. cRefers to those activities performed at least once per month. dActivities performed less frequently than monthly but at least once quarterly, semi-annually, or annually. NOTE: This table should be read as follows: Fifty-six, or 56.6 per cent, of the ninety-nine interviewed made an accounts receivable schedule; of those that performed the activity fifty-four or 96.1. per cent did so at least once per month and two did so only once per Q3A(quarterly, send-annually, or annually). 7O . . . 5 out of 10 (51%) making an accounts payable schedule . . . 5 out of 10 (1195) making an income statement . . . 5 out of 10 (1.6%) making a balance sheet . . >.. 5 out of 100161) making out F.I.C.A. tax reports It was interesting to note that excluding the first two ranked activities, the making of accounts receivable and accounts payable schedules which were (normally considered as activities performed by bookkeepers, many activities within this function were considered as within the realm of duties for a four-year degree accountant. Table 12 indicates that technical accountants do perform some activities which have been considered duties of a bookkeeper as well as some of which have been considered duties of a four-year degree accountant. All those accounting activities investigated in this study under the function of Making Accounting Reports and Schedules were performed by at least sac of the ninety-nine technical accountants. Table 12 shows that two out of three of the activities were performed primarily, fifty per cent or more of the time, at least once monthly. Of the ten activities in this function performed primarily 081} four were tax reports and the remaining six related directly to the quarterly or yearly fiscal reports. If one were to exclude long-term governmental reports, annual reports, and long-term budgets, at least seventy-dive per cent of those performing the activities did so at least once per month. 1Refers to those activities performed less frequently than monthly but at least once quarterly, sui-annually, or annually. 71 Activities grformed by go; g fig. The accounting activities in the hiring Financial Reports and Schedules Function that were performed by technical accountants in total were also performed by technical accountants in the various-sized tin-.1 Only five of the thirty-six accounting reports and schedules were not performed in all of the five sise categories of firms. Of the activities not performed by technical ' d accountants: (a) research and developent budgets were not made in the two .allest or the largest sized fin classifications 3 (b) capital ..._ stat-eats, retained earnings statements, and source and application of funds statements were not made in firms employing between 250 and 71:9 .pleyees; and (c) cash flow statements were not ude in the firms with 50 to 99 employees. These five reports were all performed by less than em out of four of the technical accountants interviewed and three of these by less than one out of eight. nerefere, it could be said that technical accountants did perform the function of Naking Financial Reports and Schedules in each of the five size of firm categories. A further analysis of Table 13 generally shows that as firms became larger there appeared to be a less proportionate share of technical accountants performing any given activity. This could be explained by the fact that those uployed in smaller firms must perform a larger number of activities while those in the larger firm bee- more specialised. However, it was noted that in firms having 100-219 employees a greater proportion of the technical accountants performed the accounting activities than did those in firms having 50-99 Cployees. 18.. Table 13 TABLE 13 FINANCIAL REPORTS “TD 36W HIDE BI TMHNIGLL momma IN FIRMS HANUFAC‘I'URDIG mun: GNDS IHNTALANDBISIZBOFFIRH 72 3 Percent Performing Activity’“ In otal [1.419 BySizeofFirn 100- 250- 750 or Type Report or Schedule 50-99 2119 71:9 More lo. Technical Accountants Per Categoryl 99 11 18 i 20 15 35 Accounts Receivable Schedule 57* 73 78 70 ho ho Accounts Payable Schedule 51* 73 78 65 33 29 Income Stateaent 89 6h 50 55 60 3h Balance Sheet 116* 82 56 50 h? 26 F.I.C.A. fax Reports h6* 91 61 50 27 29 Hannfacturing Rmense Schedule hh 1:6 39 70 It? 31 cost of Goods Sold Schedule 1111* 55 56 6o 68 20 hpioyee withholding Tax Reports M.“ 91 . 61 50 20 29 hterials Consuned Schedule M 36 SO 65 h? 26 Federal Unenplcynent Cupensation ' ‘ fax Reports 1.1 82 50 55 27 23 cost or coeds Manufactured Schedule 38 1.6 39 65 33 23 General and idninistrative mouse Schednie 37 1.6 39 So 53 20 State Uneaploynent Conpemticn ran Reports 37* 82 56 1.5 20 17 Selling Expense Schedule 36 55 Ni ’45 33 23 State Sales Tax Reports 28 1.6 33 1:5 13 17 Efficiency Reports 27 18 11 1:5 20 31 Production Budget 25* 27 ll 20 60 20 Operating Budget 21; 27 ll 15 h? 26 Property Tax Reports 2h h6 33 35 27 6 Cost of Production Statement 23 27 22 25 33 17 credit Rating Reports 22* 27 22 30 he 9 Capital Statement 22* 36 22 1:5 - 1!; Alternative cost Reports 19* 18 6 50 27 6 Consolidated Inc one Statement 18 36 22 20 13 11 Retained Earnings Statenent 18* 27 28 35 - 9 Consolidated Balance Sheet 17 36 22 15 13 ll Departnsntal Statements 15 - 6 10 33 20 Cash Budget 15* h6 11 1o 20 9 Capital Budget 15 9 6 20 13 20 Federal Excise Tax Reports ll; 18 17 30 7 6 Company Income Tax Reports 11: 36 22 20 7 3 Sales Budget 13 27 17 1o 20 6 73 TABLE 13 (continued) Percent Performing Activity 1 By Size of Fina In 100- 50- 750 or Typo Report or Schedule [total 419 50-99 2119 7149 lore Sauce and Application of Funds Statement 12 9 17 3O - 6 Cash Flow Statement 11 27 - 30 7 3 Branch and Division Statements 9 9 6 15 13 6 Research and Ibvelopaent Budget 6 - - 15 20 *Tho mll hypothesis, 'nc significant difference exists in the proportion of technical accountants performing the accounting activity when conpared by size of firm," was rejected at the .05 level of significance. “All per cents were rounded off to the nearest whole percent. won: This table should be read as follows: 57 per cent of the ninety-nine technical accountants interviewed nade an accounts receivable schedule. The doing of this activity was performed by: 73 per cent of those in firns having 14:9 employees, 78 per cent of those in firms having 50-99 olployees, etc. 7h One could also notice that the two middle-sized firm categories, those employing from loo-7179 employees, had a greater percentage of their technical accountants making reports and schedules dealing with some phase of cost accounting. When the thirty-six accounting activities in the Making Financial Reports and Schedules Function were ranked in order by the proportion performed according to each size of firm category, Appendix I, a horizontal comparison of the rankings revealed that there were few accounting activity ranks that varied more than the one-third (12 ranks) allowable rank variation;L Those activities that varied more than the acceptable one-third total rank variation when classified by size of firm were placed in two categories; (1) those ranking twelve or more higher2 than the average for the activity, and (2) those ranking twelve or more lower3 than the average for a particular activity. Those activities that were ranked higher than twelve ranks above the average in a particular firm-size category were: . . . Cash Budgets in firms having 1-h9 employees. . . . Alternative Cost Reports in firms having loo-2119 employees. . . . Production Budgets, Research, and Development Budgets, and Credit Rating Reports in firms having 250-7119 employees. lThis approach was recommended in an interview by m. Karl Hereford, former research design professor, College of Education, Michigan State University, East Lansing, Michigan, June 10, 1966. 2Refers to those that were ranked above the total rank for an activity due to a greater proportion of technical accountants performing the activity within a particular firm-size category. 3Refers to those that were ranked below the total rank for an activity due to a lesser proportion of technical accountants performing the activity within a particular firm-size category. 75 . . . Operating Budgets and Departaontal Statements in firms with more than 250 employees. . . . Efficiency Reports and Capital Budgets in firms with 750 or more employees. Those activities that were ranked lower than twelve ranks below the average in a particular fin-size category were: . . . Efficiency Reports in firms having 1-99 employees. . . . Operating Budget in firms having loo-2h? employees. . . . P. 1.0.11. Tax Reports, Mloyee lathholding Tax Reports, State Sales Tax Reports, and Capital Statement. 0 M; a_x_i_d Integpretation 21; Financial mm 93 Schedules The reaction of analysing and interpreting financial reports and schedules has been normally considered a duty of the degree accountant. However, Table 11: shows that technical accmntants also perform the activities within this function. W W activity. Four out of ten technical accountants analysed accounts receivable but less than one of three performed any of the other twenty-four analysis or interpretation activities investigated in this study. Of the seven most performed activities in this function, three were closely associated with various analyses of accounts receivable while seven of the eight least perfused were analyses associated with stockholders' equity in the business. Further analysis indicated that as the proportion of technical accountants pea-fouling an activity decreased the frequency of performance tended to change from at least once monthly to QSA (at least once quarterly, semi- annually, or annually). 76 TABLE 114 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS PERFORMED BY TEHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING NRABLE GCDDS (IN TOTAL AND BY FREQUENCY OF PERFGIMANCE“) ion Perf Activity QSA N Total N Type Analysis or Interpretation N Analyze Accounts Receivable hl h1.h 37 90.3 h 9.7 Analyze Per Cent Costs to Sales 32 32.3 26 81.2 6 18.8 Analyze Per Cent menses to Sales 30 30.3 21; 80.0 6 20.0 Comparative Analysis of Incaae Statements 26 26.3 18 69.3 8 30.7 Caparative Analysis of Balance Sheets 22 22.2 12 517.5 7 135.5 Analyze Accounts Receivable Turnover 21 21.2 9 132.9 12 57.1 Analyze Average Collection Period on Receivables 20 20.2 9 115.0 11 55.0 Determine Per Cent Return on Investment 19 19.2 12 63.2 7 36.8 Determine Average Cost Per Unit mnufactured 18 18.2 114 77.8 h 22.2 Determine Average Cost Per Unit Sold 18 18.2 114 77.8 h 22.2 Analyze Working Capital 18 18.2 9 50.0 9 50.0 Determine and Analyze Current Ratio 16 16.2 9 56.3 7 83.7 Determine Per Cent Increase or Decrease Per It. 13 13.1 7 53.8 6 176.2 Determine and Analyze Receivables , to Sales Ratio 13 13.1 8 61.5 5 38.5 Determine Inventory Turnover 12 12.1 5 111.7 7 53.3 Determine Sales to Asset Ratio 11 11.1 6 5h.5 5 85.5 Determine Acid Test Ratio 10 10.1 is 140.0 6 60.0 Determine Book Value Per Share of Stock 10 10.1 h 1:0.0 6 60.0 Determine Per Cent Earnings to Total Assets 9 9.1 1; 811.5 5 55.5 Determine Plant Assets to Long- Term Liabilities Ratio 8 8.1 2 25.0 6 75.0 Determine Equity to Asset Ratio 7 7.1 1 lh.3 6 85.7 Determine Dollar bruins Per Share of Stock 7 7.1 1 114.3 6 85.7 Determine Dividends Per Share . of Stock 6 6.1 2 33.3 h 66.7 77 TABLE 11: (continued) Proportion Performing Activity Total Monthly QSA Type Analysis or Interpretation N Z N i N % Determine Per Cent Dividend Held 5 5.1 «— - 5 100.0 Determine Liabilities to Capital Ratio 5 5.1 - - 5 100.0 aSee Appendix J for more detailed frequency of performance data - weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine. °Refers to those activities performed at least once per month. dActivities performed less frequently than monthly but at least once quarterly, semi-annually, or annually. NOTE: This table should be read as follows: Forty-one, or 111.1; per cent, of the ninety-nine interviewed analyzed accounts receivable; of those that performed the activity thirty-seven, or 90.3 per cent, did so at least once per month and four did so only once per QSA (quarterly, semi-annually, or annually). 78 Activities arformed by 51.2 _e_f fi_r_5_. Table 15 indicates that the analysis and interpretation activities performed by a minimum of one out of eight (12.5” technical accountants were also performed at least once in each of the five sire of firm categories. The smallest firms, those having 1419 uployeos, appeared to have the largest percentage of their technical accountants performing analysis and interpretation activities . When the proportion of technical accountants performing the activities in the other firm nice categories was cupared with the “nest category it showed: (1) the 50-99 sine category had a slight decline, (2) the 100-2119 siso category almost equalled the smallest category, and (3) the two largest firm sine categories, 250-7179 and 750 and over, showed a considerable decrease. In fact, less than one out of four of the technical accountants in firms having more than 750 employees performed any specific one of the twenty- five activities in this function; in most cases it was less than one out of ten. “In the twenty-five activities in the function of Analysis and Interpretation of Financial Reports and Schedules were ranked according to proportion performd by technical accountants in total and by nine of firm, Appendix L, few varied beyond the acceptable one-third (more than eight ranks) allowable rank variation. However, it was noted that almost one-half of the simificant variations were in the 50-99 employee sine category. These activities that were ranked higher than eight ranks above the average in a particular firm-size category were: . . . Determining Inventory Turnover in firms having 1419 employees. TABBB 15 79 ANALYSIS AND MWAHON OF FINANCIAL sen-ms PERFORMED BI WHICH. ACCWNTANTS IN FIRES MANUFACTURING mum GOODS INTOTALANDBISIZEGFFIRH Percent Performing Activity” By Size of Firm In 100- 250- 750 or Type Analysis or Interpretation Total l-h9 50-99 21:9 71:9 Here an. Technical Accountants Per Category' 99 11 18 ] 20 [;15 35 Analyse Accounts Receivable 111 73 50 55 110 20 Analyse Per Cent costs to Sales 32 36 28 50 h? 17 Analyse Per Cent Expenses to Sales 30* 36 28 us 53 11 (imperative Analysis of Income Statements 26 36 28 35 he 11 Comparative Analysis of Balance Sheets 22 36 28 38 27 9 Analyze Accounts Receivable Turnover 21 18 22 20 33 17 Analyze Average Collection Period on Receivables 20 36 17 10 27 20 Deternine Per Cent Return on Investnent 19 18 22 30 20 ll Detoraine Average Cost Per Unit Hanufactured 18 18 ll 20 33 1h Determine Average Cost Per Unit Sold 18 18 6 25 13 23 Analyse Uorking Capital 18 36 22 10 33 9 Determine and Analyse Current Ratio 16 27 28 20 13 6 Determine Per Cent Increase or Decrease Per Itu 13 18 6 10 13 17 Detonine and Analyze Receivables to Sales Ratio 13*’ 18 11 20 7 11 Determine Inventory Turnover 12 36 - 15 13 9 Determine Sales to Asset htio 11 18 ll 25 - 6 Determine Acid Test Ratio 10 18 17 15 7 3 Determine Book Value Per Snare of Stock 10* 27 22 15 - - Determine Per Cent Earnings to Total Assets 9* 9 17 1o 20 - Determine Plant Assets to Long-Tern Liabilities Ratio 8*’ 18 11 1o - 6 Determine Equity to Asset Ratio 7 18 17 10 - - Determine Dollar Earnings Per Share of Stock 7* 9 1'? 15 - - 80 TABLE 15 (continued) I Percent Performing Activity 1 By Size of Firm In - 100- 250- 750 or Type Analysis or Interpretation otal ~89 50-99 289 71.9 Kore Determine Dividends Per Share of Stock 6* 9 11 1S - - Determine Per Cent Dividend field 5 9 6 10 - 3 Deternine Iiabilities to Capital Ratio 5 9 11 10 - - *The null hypothesis, "no significant difference exists in the proportion of technical accountants performing the accounting activity when compared by size of firm,“ was rejected at the .05 level of significance . ** All per cents were rounded off to the nearest whole percent. more: This table should be read as follows: 111 per cent of the technical accountants intervier analyzed accounts receivable. The doing of this activity was performd by: 73 per cent of those in firms having 1419 enployees, 50 per cent of those in firms having 50-99 employees, etc. 81 . . . Determining Book Value Per Share of Stock, Equity to Asset Ratio, and Dollar Earnings Per Share of Stock in firms having 50-99 employees. . . . Determining Sales to Asset Ratio in firms having lOO-2h9 employees. . . . Determining Per Cent Earnings to Total Assets in firms having 250-716 employees. . . . Determining Per Cent Increase Per Item and Average Cost Per Unit Sold in firms having more than 750 employees. These activities that were ranked lower than eight ranks below the average in a particular firm-size category were: . .8 . Analyse Accounts Receivable in firms having 141? employees. . . . lbtermining Average Cost Per Unit Manufactured and Sold, Per Cent Increase or Decrease Per Item, and Inventory Turnover in firms having 50-99 employees. . . .8 Analyzing Average Collection Period on Receivables and Analyzing working Capital in firms having ice-21:9 employees . W .Lm m The responsibility for maintaining a ledger has been considered a task of a bookkeeper as well as of an accountant. This investigation found it also to be a task of a technical accountant as nine out of ten maintained or were responsible for some type of ledger.1 Proportion performing activitz. Table 16 indicates the specific type ledger with the proportion and frequency by which the technical accountants performed these activities. One can observe that few of the activities performed were done so less frequently than once per month ls» Table 30, p. 117. - _ w— m..._.. -—. TABLElé LEDGERS MAINTAINED BY TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING DURABLR GOODS (IN TOTAL AND BY FREQUENCY or PERFURNANCEa) 82 Proportion Performing Activity Totalb Monthlyc I c1811er Ledger Haintained N x N :17 N an Accounts Receivable 53 53.5 53 100.0 - - Payroll 51 51.5 51 100.0 - - Accounts Payable or Vouchers Payable 117 117.5 M 100.0 - - General Ledger 39 39.11 111 36.0 25 611.0 Plant (Fixed Asset) 36 36.1: 36 100.0 - - ntpenee 31 31.3 31 100.0 - - Cost 28 28.3 28 100.0 - - Materials or Stores 22 22.2 22 100.0 - - Notes Receivable 16 16.2 15 100.0 - - Notes Payable 15 15.2 15 100.0 - - Finished Goods 1‘3 15.2 15 100.0 - - Factory 15 15.2 111 93.3 1 6.? Insurance Register 11 11.1 10 90.0 1 9.1 Stockholders 9 9.1 5 55.5 8 1.14.5 Branch 6 6.1 6 100.0 - - albecriberl 2 2.0 2 100.0 - - 8‘See Appendix J for more detailed frequency of performance data «- weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine. °Refors to those activities performed at least once per month. (1 least once quarterly, semi-annually, or annually. NOTE: This table should be read as follows: Fifty-three, or Activities performed less frequently than monthly but at 53.5 per cent, of the ninety-nine interviewed maintained an accounts receivable ledger; of those that performed the activity 100 per cent did so at least once per month. 83 and that of the sixteen lodgers maintained by technical accountants: . . . Only five of then were maintained by more than one out of three. . . . Only oneohalf, eight, of them were maintained by more than one out of five. While four out of ten maintained or were responsible for a general ledger, almost nine out of ten, 86 per cent, were responsible for some subsidiary ledger. Of the subsidiary lodgers maintained by technical accountants: . . . Oneahalf maintained the accounts receivable ledger, payroll ledger, and/or accounts payable ledger. . . . One-third maintained the plant ledger and/or expense ledger. . . . One-fourth maintained the cost ledger and/or materials ledger. The remaining subsidiary lodgers were maintained by a lesser proportion of the technical accountants. Activities pgrformed 13; gig; 93; fig. Table 17 shows that except for those lodgers maintained by less than one-eighth of the technical accountants, all others were maintained in each of the five size of firm categories. However, there generally was an inverse relationship to size of firm; as firms increased in size a less proportionate number of the technical accountants performed the activities included in this function. A larger per cent of those employed in the middle-size firms, loo-21.9 employees, performed technical manufacturing activities. More specifically, they performed more of what is normally referred to as "cost accounting“ ledger activities such as maintaining cost lodgers , materials or stores lodgers, factory lodgers, and finished goods lodgers “_— Z. TABLE 17 LINES MAINTAINED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING WRABLE GWDS INTOTALAND BISIZEOF FIE! Percent Performing Ac tivity’" - By Size of Firm In 100- 250- 750 or Ledger Maintained Total 1-89 50-99 2119 71:9 Here No. Technical Accountants Per Category 99 ll 18 20 15 35 Accounts Receivable 514* 91 78 70 to 26 Payroll 52* 91 83 60 33 26 Accounts Pueblo or Vouchers Payable 118 6h 72 60 33 29 General I‘d“? 39 6h 39 55 33 . 26 Plant (Fixed Asset) 36 1:6 39 1:0 1:7 26 hpense 31 55 22 140 33 23 Cost 28* 36 11 55 to 11. Naterisll or Stores 22 27 6 30 33 20 lotus Receivable '16 27 17 30 7 9 Rates Payable 15 27 22 20 7 9 finished Goods l5 '9 6 30 27 9 Pasta: 15 9 11 30 20 9 Insurance Register 11 27 17 15 - 6 Stockholders 9 9 17 , 25 - - Branch 6 - 6 10 7 6 Subscribers 2 - - 10 - - *The null hypothesis, 'no significant difference exists in the proportion of technical accountants performing the accounting activity when compared by size of firm,‘. was rejected at the .05 level of significance. m"All per cents were rounded off to the nearest whole percent. NOTE: This table should be read as follows: 51: per cent of the ninety-nine technical accountants interviewed maintained an accounts receivable ledger. The doing of this activity was performed by: 91 per cent of those in firms having l-h9 employees, 78 per cent of those in firms having 50-99 omployues, etc. 85 than did those employed in the smaller or larger firms. mien the sixteen ledger activities performed by technical accountants were ranked in order by total and by size of firm according to the proportionate number performing the activity very little variation appeared as shown in Appendix M. The only activity varying more than the accepted one-third of the ranks (5) was the maintaining of a materials or stores ledger in firms having 50-99 employees where it received a rank lower than the accepted range. 18M Journals The maintaining of journals has often been considered largely a bookkeeping function and performed by a bookkeeper. This investigation showed that technical accountants also perform that function. In fact, seven out of ten technical accountants interviewed for this study maintained sane type of journal.1 Proportion performing activitz. As shown by Table 18 of the ninety-nine technical accountants interviewed: . . . Almost five out of ten were responsible for the general journal and/or the sales journal. . . . Four out of ten were responsible for the cash receipts and/or the check register. The combined cash journal, often taught in all bookkeeping and accounting classes was maintained by only one of ninety-nine technical accountants. However, almost all the journals were maintained by at least 25 per cent or more of the technical accountants at a frequency 18cc Table 30, p. 117. 86 TABLE 18 JOURNALS MAINTAINED BY TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING mRABLE GOODS (IN TOTAL AND BI FREQUBICI OF PERFGKMANCE“) Proportion Performing Activity Totalb | Monthly“ I QSAd Journal Maintained N 1. I N s l N 1 Sales 1:8 148.5 148 100.0 - - General Journal 1:5 115.5 his 97.8 1 2.2 Cash Receipts 142 h2.h ’42 100.0 - - Check Register 37 37.1: 37 100.0 - - Petty Cash Register 31 31.3 31 100.0 - - Purchases 27 27.3 27 100.0 - - Sales Returns and Allowances 26 26.3 26 100.0 - - Voucher Register ' 25 25.3 2!. 96.0 1 34.0 Cash Payment 13 13.1 13 100.0 - - Purchases Returns and Allowances 9 9.1 9 100.0 - - Cabined Cash ' l 1.0 1 109.0 - - aSee Appendix J for more detailed frequency of performance data - weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine. °Refers to those activities performed at least once per month. dictivities performed less frequently than nonthly but at least once quarterly, sci-annually, or ammally. NOTE: This table should be read as follows: Forty-eight, or 138.5 per cent, of the ninety-nine interviewed maintained a sales journal; or those that performed the activity 100 per cent did so at least once per month. 87 of at least once per month. Only three of the eleven journals were maintained by less than one out of four technical accountants and each was normally part of another more advanced journal; e.g. cash payments journal as part of check register, combined cash journal as part of the cash receipts journal and the check register, and the purchases returns and allowances journal as part of the purchases journal and the voucher register. Activities pgrformed 13; gig; of _fi_r_5. All journals maintained by at least' one out of ten of the technical accountants were also performed in each of the firm size categories with the exception of the cash payments journal as shown by Table 19. However, most accountants consider the cash payments journal as a simplified chock register and both do serve the same purpose. The firm with over 750 employees having four technical. accountants tomaintaincashpaymemt journalswasimtbo process of modernising its accounting cyst. whereby the cash payments journal will be replaced by an up-to-date system. has the activities were ranked in total and by size of fin, few ranldngs varied more than the acceptable one-third of the total 1 number of activities. men emperod to the total rankings: . . . The voucher register was ranked higher, more often performed, in the largest sized category, 750 or more employees. ' . . . The cash receipts journal was ranked lower, less often perfumed, in the fins enploying 250-710 employees. Y 34» Appendix II, p. 213. 88 TABLE 19 JOURNALS MAINTAINED BY TEHNICAL ACCOUNTANTS - INFMHANUFACTURINGIIJRABIEGOODS INTOTALANDBYSIZEOFFIBH MW Percent Performing Activity" BySizeofFirm In 100- 250- 750 or Journal Maintained JTotal 1-h9 50-99 21:9 7119 More No. Technical Accountants Per Categoryl 99 11 18 2o 15 35 * Sales 139* 91 67 65 33 23 General h6* 73 u. 70 60 17 Cash Receipts h2* 73 78 65 13 11: Check Rooster 37* 73 m. 65 33 9 Petty Cash Register 31* 1.6 61 So 13 9 Purchases . 27* 6h 50 20 13 11: Sales Returns and Allowances 26* 36 28 60 20 6 Voucher Register 25 27 22 so 20 in cash Payment 13* - 39 5 7 ll Purchases Returns and Allowances 9 9 17 20 7 - “was.“ 1 - - 5 - *Tho no.1]. hypothesis, 'no significant difference exists in the proportion of technical accountants performing the accounting activity when cupared by size of firm," was rejected at the .05 level of significance. “All per cents were rounded off to the nearest whole percent. NOTE: This table should be read as follows: 119 per cent of the ninety-nine technical accountants interviewed maintained a sales journal. The doing of this activity was performed by: 91 per cent of those in time having l-h9 employees, 67 per cent of those in firms having 50-99 employees, etc. 1.... first. . 3!: u 89 arrange and _Miat me Of the ninety-nine technical accountants interviewed in this study, ninety-three prepared or initiated some specific data or the supporting data to be transferred to journals.1 Proportion performing activities. Table 20 indicates that all of the twenty-one activities in this function having to do with the preparing or initiating data or supporting data for journal entries were done by more than 11; per cent of the technical accountants. A large percentage, seventy-five or more , of all activities were performed at least monthly except those which are normally classified as the annual activities such as closing and reversing entries, data for tax valuation, and supply inventories. Approximately six out of ten prepared normal Operating journal entries, and the same proportion mde correcting entries. This appears significant inasmuch as many accounting teachers spend considerable instruction time on preparing and recording the journal entries and pass over without equal stress how to make corrections for possible errors or omissions. Five out of six technical accountants preparing or initiating entries also had to write explanations for them - a task normally omitted by accounting teachers as unimportant. Activities mrformed by size of firm. As shown in Table 21, all the preparing and initiating activities considered in this function were performed by technical accountants in the five size of firm categories 13cc Table 30, p. 117. 90 TABLE 20 PREPARING 0R INITIATING DATA ACTIVITIES PERFORMED BY TRHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING WRABLE GOODS (IN TOTAL AND BY FREWENCY OF PERFORMANCEa) Proportion Performing Activity Totalb 1 Monthly“ r QSAd To Prepare or Initiate N z [ N x l N % Regular Journal Entries or Journal Vouchers 6h 6h.6 63 98.11 1 1.6 Entries for Corrections 59 59.6 52 88.2 7 11.8 Adjusting Entries 56 56.6 145 80.14 11 19.6 Explanations for Each Journal Entry 52 52.5 52 100.0 - - Expense Accounts ’43 113.1; h2 97.7 1 2.3 Closing Entries 132 132.1; 11 26.2 31 73.8 Bank Reconciliations 38 38.14 38 100.0 - - Social Security Forms (VI-h, W-2) 36 36.1; 27 75.0 9 25.0 Ihta for Electronic Equipment- To be used later on Reports 35 35.1: 35 100.0 - - Reversing Entries 3h 311.3 13 38.3 21 61.7 Ditties for Direct and Indirect Costs 32 32.3 31 96.9 1 3.1 Entries for the Purchase of Materials 31 31.3 31 100.0 - - Insurance Forms 28 28.3 26 92.9 2 7.1 Entries to Record Waste 8: Scrap Supplies Inventories 25 25.3 lb 56.0 11 hh.0 Entries to Adjust Inventory Cards 2h 2h.2 21 87.5 3 12.5 Entries for the Return of Materials to Stores ' 23 23.2 23 100.0 - - Eltrics to Record Defective work 19 19.2 19 100.0 - - Entries for the Issuance of Materials 18 18.2 17 91M: 1 5.6 Tax Valuation Sheets 11: 1h.1 3 21.5 11 78.5 aSee Appendix J for more detailed frequency of performance data - weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine. cRefers to those activities performed at least once per month. dActivities perde less frequently than monthly but at least once quarterly, semi-annually, or annually. NOTE: This table should be read as follows: dety-four, or 6h.6 per cent, of the dusty-nine interviewed prepared or initiated regular journal entries or journal vouchers; of those that performed the activity sixty-three, or 98.1: per cent, did so at least once per month and one did so only once per QSA (quarterly, semi-annually, or annually). 91 TABLE 21 PREPARING m INITIATING DATA ACTIVITIEB Pm BY TEBHICAL AGCWWTS IN rm MANUFACTURING NRABLE Goons IN TOTAL AND B! SIZE OF FIRE Percent Performing Activitfl Br 3129 Of Fire In llOO- 250- 750 or To Prepare or Initiate Total 1-h9 50-99 2119 7119 More so. Technical Accountants Per Category 99 ' 11 18 1 20 | 15 | 35 Regular Journal Ditties or Journal Vouchers 65 55 56 65 80 66 entries for Corrections 60* 6h 33 so 87 66 Adjusting Entries 57 h6 56 115 60 66 uplsmtions for fish Journal Into-y 53* 73 22 As 60 63 Expense Accounts 2.3 1:6 56 50 33 37 Closing Entries 112 86 Ho 50 53 31 Rank Deposits her“ 82 67 6c 13 11. Bank Reconciliations 38' 6h 61 6o 13 17 withholding Tax Fons (ii-h. w-2) 36* 73 61 no 7 23 lhta for noctronic Bquipont- , To be used later on Reports 35* 9 6 50 1.7 A6 Reversing Entries 3h* 27 H: 135 53 17 htries for Direct and Indirect Costs 32* 1.6 22 1:5 53 17 htries for the Purchase of Materials 31* 55 22 So no In Insurance Forms 28* 6h 28 35 27 111 Entries to Record Haste 8: Scrap Materials 27* 27 - 15 60 31. applies Inventories 25 55 28 15 20 23 Entries to Adjust Inventory Cards 22. 1.6 22 25 no 11 htries for the Return of hterials to Stores 23 27 6 20 no 26 Entries to Record Defective work 19* 27 - 10 no 23 htrios for the Issuance of Materials 18* 18 - 15 1.7 17 Tax Valuation Sheets 1h* 36 17 25 13 - ‘The null hypothesis, “no significant difference exists in the proportion of technical accountants performing the accounting activity when owed by size of firm,” was rejected at the .05 level of significance. “All per cents were rounded off to the nearest whole percent. m. This table should be read as follows: 65 per cent of the ninety-nine technical accountants interviewed prepared or initiated regular journal entries or journal vouchers. The doing of this activity was performed by: 55 per cent of those in firms having l-h9 employees, 56 per cent of those in firms having 50-99 employees, etc. 92 except three cost accounting entries not performed in conpanies having 50-99 employees and one property tax activity not perforned in the largest size category, 750 or more employees. When one observes the percentage of the activities performed within each cupany siae category, no consistent pattern seemed to energe. Although all the technical accountants performed the activities in each size category, the percentages were not consistent. The activities in this function were generally perforned by technical accountants to a greater degree in the smaller size fins categories, but some were perferned contrary to this pattern with larger fins having the greatest proportion performing the activities. Those activities that could be considered routine such as preparing U-2 and EH; forms, bank deposits, bask reconciliations, insurance ferns, etc. , were performed to a greater degree in the smaller size categories. The rank order of the activities according to size of fin, Appendix 0, also supported the idea that there was no consistent pattern of proportion performing the activities in this function. In fact, alnost one out of five, 18 per cent, of the activities exceed the one- third (7 ranks) allowable variation in rank with the greatest deviations observed in the smallest, 14:9 olployees, and the two largest categories, 250-710 and over 750 enployees. Those activities that were ranked higher than the overall average by nore than the seven allowable ranks in a particular firm-sine category were: . . . Insurance ferns and supplies inventory data in fine having 14:9 esployees. . . . htries to record saste and scrap naterials and for the issuance of netsrials in fines having 250-7h9 employees. 93 . . . Entries to record waste and scrap materials to stores, and defective work in firms having more than 750 employees. Those activities that were ranked lower than the over-all average by more than the seven allowable ranks in a particular firm-size category were: . . . Adjusting entries in firms having 1439 employees. . . . Explanations for each journal entry and data for electronic equipment-to be used later for reports in firms having 50-99 employees. . . . Adjusting entries in firms having loo-219 employees. . . . Ehcpense accounts, bank deposits and reconciliations, and withholding tax forms (W-h, W-Z) in firms having 250-7h9 employees. . . . Bank deposits in firms having more than 750 employees. Recorgg 93 Posting Data Accounting data must be recorded in some convenient permanent place for current or future reference. This manually or machine recording or transferring of accounting data is referred to as posting. The actual recording or posting is considered an essential but routine function normally performed by a bookkeeper, accounting clerk, or electronic data processing. This investigation was concerned with the number of technical accountants performing or having reaponsibility for the specific activities within the function. Table 30 shows that seven out of ten technical accountants participating in this study had responsibility for one or more of the recording or posting activities. Martian performing activi z. Table 22 indicates that all those recording and posting activities investigated in this study were performed 911 TABLE 22 RECORDING (R POSTmG ACTIVITIES PERFORMED BY TEXJHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING IIIRABLE GOODS (IN TOTAL AND BY FREQUENCY OF PERmecaa) Proportion Performin Activity Totalb Monthgc QSAd To Record or Post N i N 5 N % Adjusting Entries to Ledgers 50 50.5 39 78.0 ll 22.0 Ihta to Ledgers from Original Set of . Books or Electronic Data Run-off Sheets 113 143.1; 1:3 100.0 - - Closing Entries to Ledgers 37 37.1; lb 37.8 23 62.2 Reversing Entries 37 37.1; 11 29.7 26 70.3 Purchase of Interials 35 35.1; 35 100.0 - .- Return of Materials to Stores 27 27.3 27 100.0 - - Open a Set of Books 26 26.3 1 3.8 25 96.2 We 01' Haterials 22 22.2 21 95.34 1. _ 34.6 Haste & Scrap Hatorial to Ledgers 22 22.2 20 90.8 2 9.2 8‘See Appendix J for more detailed frequency of performance data - weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine . °Refers to those activities performed at least once per month. dActivities performed less frequently than monthly but at least once quarterly, sou-annually, or annually. ME: This table should be read as follows: Fifty, or 50.5 per cent, of the ninety-nine interviewed posted adjusting entries to lodgers; of those that performed the activity thirty-nine, or 78.0 per cent, did so at least once per month and eleven did so only once per $1! (quarterly, semi-annually, or annually). 95 by techMcal accountants. The activities associated with the posting of adjusting entries were performed by the greatest proportion - one out of every two of the participants. The first four activities, arranged by number of technical accountants performing the activity, were normal accounting or bookkeeping cycle entries for the posting of regular, adjusting, closing and reversing entries. While at least one out of five of the technical accountants performed each of the nine activities in the bcording and Posting Data -* Function, they were not performed with equal frequency. 0f the nine activities categorized under this function, three closely related entries were performed primarily on a QSA basis. The three QSA associated activities were the posting of closing entries, opening a set of books, and reversing entries. Activities mrformed 13; £23 9; fig; As shown by Table 23, all of the activities classified under the Recording and Posting mta Function were performed by technical accountants in each of the five size of firm categories. It appeared that the smallest and medium sized firms (ls-149 and loo-21.9 employees) had the largest proportion performing these activities. However, when arranged in rank order by performance, Appendix P, only the largest category deviated more than the allowed one-third of the ranks. This sense to indicate that the proportion of technical accountants performing activities does vary by size of firm but the rank order renains approximately the same when compared with the over-all rank order of the activities. 96 TABLE 23 RECORDING OR POSTDIG ACTIVITIE PEPORMED BY TRENICAL ACCOUNTANTS IN FIRMS MANUFACTURING WRABIE GOODS IN TOTAL AND BY SIZE OF FIRM Percent Performing Activity“ A By Size of Firm In 100- 250- 750 or To Record or Post Total l-h? 50-99 2119 7349 More No. Technical Accountants Per category 99 11 j 18 ] 20 [ 15 T 35 Adjusting Ditties to Ledgers 51 73 39 SS 53 1:6 Ihta to Ledgers from: Original Set of Books or Electronic mta Run-off Sheets 113 116 28 65 h? 37 closing entries to Lodgors 37* 73 39 so he 17 mam-sine Entries 31* e1. 39 55 53 11 Purchase of hterials 35* 6h 39 50 33 17 Return of Materials to Stores 27 27 6 35 27 3h Open a Set of Books 26 36 22 35 27 20 Issuance of Haterials 22* 18 11 25 1.7 17 waste a Scrap Material to Lodgers 22 27 11 20 1.0 20 *The null hypothesis, "no significant difference exists in the proportion of technical accountants performing the accounting activity when cmred by size of firm," was rejected at the .05 level of significance. “All per cents were rounded off to the nearest whole percent. NOTE: This table should be read as follows: 51 per cent of the ninety-nine technical accountants interviewed posted adjusting entries to lodgers. The doing of this activity was performed by: 73 per cent of those in firms having l-h9 mloyees, 39 per cent of those in firms having 50-99 employees, etc. 97 was and lung nines 222-22 The use of multi-column working papers to caqaile data into a manageable form has been employed by both bookkeepers and accountants. The purpose of this section was to deter-ins the extent to which technical accountants employed working papers to assist in the compiling of data for reports and schedules. Prggrtion Erfomig activities. Table 2h shows that slightly more than four out of ten technical accountants use working papers for making the trial balance, financial statements, and/or work in process papers; one out of three for tax reports, depreciation, and/or allocation of costs; one out of four for insurance and/or the post-closing trial balance. However, only five of the technical accountants either made or used working papers to consolidate company divisions or branches. The lack of using working papers to consolidate divisions or branches could be explained by the fact that most small firm had no branches and the larger firms were wholly owned subsidiaries of firms based elsewhere. The working papers, excluding those for depreciation and the post-closing trial balance, were primarily employed at least monthly. Of those working papers used GSA, most were performed quarterly.1 The post- closing trial balance working papers were used annually 50 per cent of the time. It was interesting to note that in today's world of modernisation and nchinery 26 per cent of the ninety-nine accountants were currently involved with the almost non-purposeful activity - the lees Appendix J, pp. 196-2o7. TABLE 214 mama PAPERS MADE AND USED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING IIIRABLE GOODS (IN TOTAL AND BI FREQUENCY OF PERFORMANCE“) T Egress Performing Act-.1313: Totalb MBntthc (BAT Working Papers For N f N S N % Trial hlancs hh Huh 38 86.14 6 13.6 Financial Statements hh Huh 35 79.5 9 20.5 work in Process (Cost Sheets) h3 h3.h 31: 79.0 9 21.0 Tax Reports 3h 3h.3 19 55.9 15 1314.1 Depreciation on Assets 33 33.3 15 16.1.; 18 5h.6 Allocating 008158 33 33.3 211 72.8 9 27.2 Inmrance Expirations 27 27.3 17 63.0 10 37.0 Post-Closing Trial Balance 26 26.3 9 313.6 17 65.1: Consolidating Divisions or Branches 5‘ 5.1 h 80.0 1 20.0 a'fiee Appendix J for lore detailed frequency of performance data - weekly, nonthly, quarterly, semi-annually, and annually. b‘l‘otal possible responses per activity were ninety-nine . °Refers to those activities performed at least once per month. dActivities perforned less frequently than nonthly but at least once quarterly, semi-annually, or annually. NOTE: This table should be read as follows: per cent, of the ninety-nine interviewed nade or used trial balance Forty-fmr, 01‘ hheh working papers; of those that perde the activity thirty-eight, or 86.h per cent, did so at least once per nonth and six did so only once per W (marterly, semi-annually, or annually). 99 using of working papers for the post-closing trial balance. Activities mrforned 13; 2.1.22. a; Lie. The percentage of activities perforned by technical accountants in each of the five categories generally decreased as the firs sise becano larger as shown by Table 25. All the activities in this function were porfornod by technical accountants in each siso category except for the activity of using working papers to consolidate divisions and branches which was not performed by the snellost fine size category. hall fines would not nor-ally have divisions or branches. ion a caparison was ndo of total over-all rankings with ranks by fire siso categories, the one-third (3 ranks) allowable rank variation in this function was surpassed in five categories.1 m working paper activities that were ranked lower than the over-all average by noro tun the three allowable ranks in a particular fin-sine category were: . . . Post-closingtrialbalancoinfirnshavingl-wand loo-2&9 onployeos. . . . Trial balance in fine having noro than 750 onpleyeos. . . . Tax reports in firns mm; loo-2&9 olployeos. The working papers for allocating costs were ranked higher than the one- third allowable variation in firns having 250-?” olployeos. Ion-Classified Hailing, m 2;; Porfo_r§_ng Activities In any position there appears to be activities perfornod that do not blend thenselvos into neat categories and the position of technical «constant was no exception. Those non-classified activities are 18eo Appendix 0, p. 216. TABLE 25 mo PAPES MADE AND 1183]) BY TMHNIGAL AGGGJNTANTB IN FIRIB WAWG NRABLE 000138 INTOTLLAKDBISIZEOFFIRH 100 Percent Performing Activity? BySizeofFirslT In » 100- 250- 75c or Working Papers For Total 14:9 50-99 2’19 7&9 More No. Technical Accountants Per Category 99 11 j 18 j 201 15 I 35 Trial Balance 1.1? 73 61 60 he 20 Financial Statements “1* 91 56 115 ho 26 work in Process (Cost Sheets) 10* 634 so 60 1.7 23 Tax Reports 31.* 82 61 30 20 1h Depreciation on Assets 33 SS 39 to 33 20 Allocating Costs 33* 27 39 to S3 20 Insurance nnpirsticns 27' 1.6 so 30 13 1h Post-Closing Trial Balance 26* 6h 39 1:5 13 3 Consolidating Divisions or Branches S - 6 S 7 6 *The null hypothesis, ”no significant difference exists in the proportion of technical accountants perfornng the accounting activity when cupared by size of fin,“ was rejected at the .05 level of significance . "All per cents were rounded off to the nearest whole percent. ME: This table should be read as follows: hh per cent of the ninety-nine technical accountants interviewed used working papers for naking a trial balance. The doing of this activity was performed by: 73 per cent of those in firns having 14:9 employees, 61 per cent of those in firns having 50-99 uployees, etc. 101 necessary and perferned periodically but are not considered a naJor portion of any one of the standard accounting cycle functions. Almost all the technical accountants interviewed perfornod one of these forty-two non-classified naintaining, analysing, or perforning activities in this function. Proportion performing activity. One can observe free Table 26 that the four nest often perforned activities were routine. tasks that could be quickly perfected and nore so, could be readily taught to a student or new employee. An enployee would have to have little bookkeeping or accounting background to learn and perfon these four activities that were perfomed by at least four out of ten of the technical accountants in this investigation. These activities perfcrned by approxinately one-third of the techninal accountants were prinarily cost accounting oriented. in analysis of the forty-two activities considered in this function indicated that those activities related to cost accounting were perforned by at least one out of six technical accountants and when arranged in order by nenbers of technical accountants perfcrning the activities, the cost accounting itens ranked princrily in the upper one-half of the list. Of the activities perferned by 10 per cent or loss of the interviewees, eight out of the thirteen were related in one fern to the handling of negotiable instrunents and of those, Judgnont notes and bailnent leases were not handled by any of the participating technical accountants. h]: three of the forty-two activities in this function, rule and balance accounts and establish or design a systenof internal TABLE 26 NON—CLASSIFIED MAINTAINING, ANALYZING, OR PERFORM ACTIVITIES DONE BY TECHNICAL AOCCXJNTANTS IN FIRMS MANUFACTURING DURABLE GOODS (IN TOTAL AND BY FREHUENCI OF PERFORMANCE?) Proportion Performing Activity Totalb I Monthlyc Q’SAd Type Activity N 1 l N at N 5: Verify Balances of Control Accounts with Subsidiary Ledger 61 61.6 61 100.0 - - Check Postings and Totals Sh 514.5 53 98.2 1 1.8 Foot and Balance Ledger Accounts 116 146.5 1114 95.6 2 14.11 Foot, Balance, and Total Columns in Special Journals 143 113.14 12 97.7 1 2.3 Haintain Withholding Tax Records 35 35.14 29 82.8 6 17.2 Check Creditor Invoices and Statenents 31; 314.3 32 914.2 2 5.8 Maintain Job Cost fleets 33 33.3 32 97.0 1 3.0 Analyze Material Cost Variance 32 32.3 29 90.6 3 9.1; Analyze Labor Cost Variance 31 31.3 28 90.3 3 9.7 Analyze Indirect Costs 29 29.3 28 96.6 .1 3.1; Compare Costs with the Budget 28 28.3 214 85.7 1. 117.3 fills and Balance Accounts 27 27.3 13 148.1 114 51.9 Analyze Sales 26 26.3 26 100.0 - - Haintain Insurance Records (expirations and pruiuns) 26 26.3 22 817.7 14 15.3 Handle collection of Outstanding Debts 25 25.3 23 92.0 2 8.0 Analyze Distribution Costs 25 25.3 22 88.0 3 12.0 Analyze Adlinistrative Costs 21.; 211.2 22 91.7 2 8.3 Maintain State Sales Tax Records 23 23.2 22 95.7 1 11.3 Analyze Overhead Cost Variance 23 23.2 21 91.3 2 8.7 Determine Estinated Costs 23 23.2 19 82.7 h 17.3 Authorize Payment of Vouchers 22 22.2 22 100.0 - - Caspare Manufacturing and mstributing Costs 22 22.2 16 72.7 6 27.3 Detemine the Base for Distribution of Service Department Costs to Production 20 20.3 13 65.0 7 3S .0 Handle Prodssory Notes 18 18.2 18 100.0 - Maintain Waste, filoilage, 8t alrinkage Records 18 18.2 17 917.14 1 5.6 Phintain Depar‘hnental Records 18 18.2 16 88.8 2 11.2 Act as a Paying Cashier 17 17.2 17 100.0 - - Maintain Perpetual Inventories 16 16.2 114 87.5 2 12.5 Audit Internal Accounting Activities 16 16.2 111 87.5 2 12.5 TABLE 26 (continued) 103 Pr0portion Performing Activity Totalb 1 Monthly" QSAd Type Activity N z | N a: N 7: Handle Sight Rafts with Bill of Ladings 10 10.1 9 90.0 1 1.0.0 Design a System of Internal Control 9 9.1 2 22.2 7 77.8 Establish a Systen of Internal Check 9 9.1 2 22.2 7 77.8 Eliminate Reciprocal Accounts 8 8.1 7 87.5 1 12.5 Handle Collateral Notes 8 8.1 6 75.0 2. 25.0 Use Red Ink to New Lines 8 8.1 6 75.0 2 25.0 Handle Conditional Sales 7 7.1 7 100.0 - - Discount Notes 6 6.1 5 83.3 1 16.7 We Chattel Mortgages 5 5.1 1; 80.0 1 20.0 . Handle Tine Ik'afts 5 5.1 14 80.0 1 20.0 Handle Trade Acceptances 1: 11.0 14 100.0 - - Handle Judgaent Notes 0 0.0 - - - - Handle Bailnent Leases 0 0.0 - - - - ‘See Appendix J for more detailed frequency of performance data - weekly, monthly, quarterly, sed-ammally, and annually. bTotal possible responses per activity were ninety-nine . °Refers to those activities performed at least once per nonth. dActivities perforned less frequently than monthly but at least once quarterly, semi-annually, or annually. mm: This table should he read as follows: Sixty-om, or 61.6 per cent, of the ninety-mine interviewed verified balances of control accounts with a subsidiary ledger 3 of those that performed the activity 100 per cent did so at least once per nonth. 101: control, were performed QSA, and the remaining were performed at a frequency of at least once per month. Activities perfomeg by gig; of £21.55. Table 27 shows that as fims increased in size generally a less proportionate number of technical accountants perfonned any given activity. However, one could observe a significant difference in the pattern of performance in this function as culpared to the others. An increased number showed a bell;type curve portraying the percentages by size of firm as the smallest and largest had the least per cent of the activities performed by technical accountants, while the technical accountants in the middle sized culpanies performed the activities at a greater percentile rate. The technical accountants in the next to smallest sized firms, 50e99, continued to perform the activities at a lesser rate than either of the adjacent size categories . Table 27 also shows that a larger proportion of the technical accountants in firms having between 100 and 71:9 employees performed cost accounting activities. than the forty-two activities in this function were ranked in total and by size of firm according to the proportion performed by technical accountants, Appendix H, few varied more than the one-third allowable (11; ranks) deviation in rankings. Of the eight activities that had a deviation of more than the allowable fourteen ranks, four were bookkeeping activities not as prevalent or important to the larger films. me other deviations were cost or departmental activities not as important to the smaller firms. The use of red ink to draw lines was unimportant, according to rankings, in four of the five firm size categories. However, rm 27 105 mm mm, ANALYZING, OH PW ACTIVITIES DON! BI TECHNICAL AGCWS IN FIRES MANUFACTURED WRABLE GOODS IN TOTAL AND B! 8123 0? II”! Type Activity Percent Performi_ng Ac tit: ' LI. tal ByflaeofFirn 100- 250-1750 or [Ia-1:9 0-99 2179 7119 Here No. Technical Accountants Per Category 99 11T18 120 | 15 ] 3S Verify Balances of Control Accounts with Subsidiary Ledger 62 55 56 65 73 to Check Postings and Totals 55 61: 50 SS 67 1:9 root and Balance Ledger Accounts 1;? 73 1th 50 177 37 Feet, hlanoe, and Total Colms in Special Journals Id 73 M: 60 27 31 hintain fithholding 1's: Records 35 82 39 1:0 27 20 Check creditor Invoices and Statements 311* 73 28 55 27 17 hintain Job Cost Sheets 33* 6h 22 1:5 to 20 Amlyse Material Cost Variance 32 36 22 5o 57 20 Analyse Labor Cost Variance 31 36 22 60 to 11; Analyse Indirect Costs 29 27 22 £5 £7 17 Cospere Costs with the hdget 28 27 ll 25 he 31; his and Balance Accounts 21" he 28 55 27 6 mm. Bllss 26* 55 17 to to 9 laintain Insurance Records (expiratims and pro-1m) 26* 55 28 3c 20 1? Handle Collection of Outstanding Debts 25 55 28 3O 33 9 Analyse Distribution Costs 25 36 ll 1m to 1h Analyse Addnistrative Costs 21: 27 17 1:0 170 ll Naintain State Sales Tax Records 23 36 28 30 27 ll Analyse Overhead Cost Variance 23* 27 17 to 1;? 6 Determine lstisated Costs 23* to 6 30 to 1!: Authorize Payment of Vouchers 22 36 28 35 27 6 Cupsre Hanufecturing and Metributing Costs 22 27 6 35 1:0 11; Detersine the Base for Distribution ef Service Depertsent Costs to Production 20* 18 - 35 53 9 Handle Pruissory Notes 18 116 22 15 13 ll hintain Haste, fioilage, 8c Shrinkage Records 18* 27 - 15 1.0 17 hintain lbpartnental Records 18 9 6 15 no 20 Act as a Paying Cashier 17 36 28 20 7 9 Heintain Perpetual Inventories 16* 36 ll 15 33 6 Audit Internal Accounting Activities 16 9 ll 25 33 9 M V".- - . TABLE 27 (continued) 106 Percent Performing Activity By Size of Fina In 100- 250- 750 or Type Activity [Total 1-h9 50-99 21:9 71:9 More Handle Sight Drafts with Bill of Ladings 10 18 .. 20 20 3 Design a System of Internal Control 9 l8 6 15 20 - Establish a Systen of Internal Check 9 18 ll 15 13 - Eliminate Reciprocal Accounts 8 9 6 5 13 9 Handle Collateral Notes 8* 18 17 lo 7 - Use Red Ink to New Lines 8 - 28 10 7 - Handle Conditional Sales 7 9 6 1c 13 3 Msccunt Notes 6 18 - 15 7 - Handle Chattel nortsam 5 18 ll 5 - - Handle Time Drafts 5 9 - 15 7 - Handle Trade Acceptances 1: 9 - 10 7 - Handle Jadgsent Notes 0 - - - - - Handle Bailnent Leases O - - - - - *The null hypothesis, ”no significant difference exists in the proportion ef technical acc ountaMs performing the aecmnting activity when cupared by size of firm," was rejected at the .05 level of significance. “All per cents were rounded off to the nearest whole percent. NOTE: This table should be read as follows: ninety-nine technical accountants interviewed verified balances of control accounts with a subsidiary ledger. 62 per cent of the The doing of this activity was performed by: 55 per cent of these in firms having l-1:9 enpleyees, 56 per cent of these in firms having 50-99 enleyees, etc. ~ 107 in firms having from 50-99 enmloyees, red lines were employed by technical accountants to indicate slow or norpay customers in the accounts receivable ledger . Only one of the ninety-nine participants ruled ledger accounts with red lines. It was interesting to note that 'ruling and balancing of ledger accounts" was performed by one out of four of the interviewees. This activity has often been considered by accountants as busy-work activity performed in only the smallest of firms where the same set of books is used year after year. This investigation determined that the ruling and balancing of accounts was still in use and in all size of firm categories although the larger firms performed it to a lesser degree. Hathmatical gmtatmns It has been said those who were 'goed with mathematics could also be good in accounting.’I This section attenuated to determine Just what mathematical computations were made by technical accountants in firms mamfacturing durable goods. Nest, 98 per cent, of the technical accountants did perform some mathematical conputaticns.1 Prmrtion p_erf___o_r_-m_igg activi 1° Although most of the technical accountants did perform mathematical computations, Table 28 shows that the most often performed activity, computations for F.I.C.A. taxes, was perfermed by only four out of ten technical accountants. 0f the nineteen activities under this function performed by 30 per cent or more of the technical accountants, twelve pertained to payroll, payroll taxes, or payroll deductions. The balance of the more often performed activities lsee Table 30, p. 117. “mt ’ Tux-u” es TABLE 28 108 MATHEMATICAL COMPUTATION ACTIVITIES PERFORMED BY TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING maABLE GOODS (IN TOTAL AND BI FREQUENCY OF PERFORMANCES) Proportion Performing Activity Totalb Monthly° and Maths-stical Computations For ‘—N_'I N If N z FeIeCe‘e T8108 “8 I'd-[eh 140 90e9 1‘ 90]. Vacation and Holiday Pay 110 1:0.1: 32 80.0 8 20.0 llata for Adjusting nitries 1:0 hOJt 30 75.0 10 25.0 Overtime Payroll 39 39.14 39 100.0 - - State Unauployment Taxes 39 39.1: 15 38.17 211 61.6 Federal Unemployment Taxes 39 39.1: 13 33.1: 26 66.6 Payroll by Hour or Day Rate 38 38.1: 38 100.0 - - Percentages 37 37.14 37 100.0 - - Invoicing Castosers 36 36.14 36 100.0 - - Inventories by Physical Count 35 35.11 1 2.9 3h 97.1 Payroll Job Tickets 3h 314.3 314 100.0 - - Cash mscoonts 3h 31:.3 31: 100.0 - - Norkmen's Cupensation 3h 311.3 21: 70.6 10 29.1: Bonuses 3h 38.3 17 50.0 17‘ 50.0 (h'oup Life Insurance Pruiums 32 32.3 32 100.0 - - Medical and Hospitalization Plan Premiums 32 32.3 32 100.0 - - Allocation of Costs to Job 32 32.3 31 96.9 1 3.1 Using Cost Standards 31 31.3 30 96.8 1 3.2 Allocating Costs to Departments 23 23.2 20 86.9 3 13.1 Insurance lhta 23 23.2 20 87.0 3 13.0 Perpetual Inventory Records 23 23.2 20 87.0 3 13.0 Straight Line Depreciation 23 23.2 9 39.1 lb 60.9 Pension and Annuity Payments 22 22.2 16 72.7 6 27.3 Trade Discounts 21 21.2 20 100.0 - - Determining Overabsorbed Overhead 21 21.2 17 80.9 1: 19.1 Uncollectible Accounts 21 21.2 12 57.1 9 1:2.9 Payroll Mt Prmnms 20 20.2 20 100.0 - - Determining Underabsorbed Overhead 20 20.2 16 80.0 h 20.0 Inventories by Fife Method 20 20.2 11 SS .0 9 1:5.0 Determining the Base for Distributing ' Service Department Costs to Production 19 19.2 11 57.9 8 112.1 Inventories by Cost or Market Costing 19 19.2 9 um: 10 52.6 Depreciation by Declining Balance Method 18 18.2 5 27.8 13 72.2 TABLE 28 (continued) 109 ficrtion Performing Activity Total Monthly QSA Mathematical Computations For N S N z N 5 Interest Receivable 17 17.2 16 9h.1 l 5.9 Obsolescence 17 17.2 7 h1.2 10 58.8 Cost Estimating 16 16.2 16 100.0 - - Allocating Costs to Divisions 16 16.2 15 93.8 1 6.2 Interest Payable 16 16.2 13 81.2 3 18.8 Allocating Costs to Process 15 15.2 11 73.3 1: 26.7 Cost-Volume Relationships 15 15.2 10 66.7 5 33.3 Establishing Standards 15 15.2 8 53.3 7 1.6.7 Foreign Exchange Equivalents 1.1: 111.1 11 78.6 3 21.1: Inventories by Average Cost Method 111 11:.1 11 78.6 3 21.1: Break-Even Analysis 13 13.1 3 23.1 10 76.9 Determining Whether to Make or Buy an Item 12 12.1 8 66.7 h 33.3 Determining Replacement Costs for Equipment 12 12.1 6 50.0 6 50.0 Hark-Up of Prices 10 10.1 8 80.0 2 20.0 Determining the Cost of Carrying Inventories 10 10.1 14 140.0 6 60.0 Rent 9 9.1 9 100.0 - - Determining Sale Price for Equipment 9 9.1 5 55.6 1: 1111.1: Intermining when to Purchase Inventories 8 8.1 8 100.0 - - Determining Budget Variances 8 8.1 6 75.0 2 25.0 Mark-Down of Prices 8 8.1 5 62.5 3 37.5 Determining Volume Variances 8 8.1 5 62.5 3 37.5 Determining Best Method of Financing 8 8.1 2 25.0 6 75.0 What Inventories to Purchase 7 7.1 7 100.0 - - Payroll by Per Unit or Piece 6 6.1 6 100.0 - - Determining Number Days Inventory Needed 6 6.1 5 83.3 1 16.7 Determining How limb to Purchase - Econcmzic Order Chantity 6 6.1 3 50.0 3 50.0 Price-Level Adjustments 6 6.1 2 33.3 11 66.7 Depreciation by ans-or-Digits Method 6 6.1 - - 6 100.0 Determining Cost of By-Prodncts 5 5.1 5 100.0 - - Determining Fixed Costs of Joint Products 11 11.0 11 100.0 - - Determining Variable Costs of 'Joint Products 1: 1..o 1: 100.0 -.. - Payroll by Incentive Plans 3 3.0 3 100.0 - - Patents 3 3.0 1 33.3 2 66.7 TABLE 28 (continued) Proportion Performing Activity Total Mbnthly QSA Mathematical Computations Fer N % N % N % Depreciation by Units of Production 3 3.0 1 33.3 2 66.7 Cash.Ihvidends 3 3.0 ~ - 3 100.0 Inventories by weighted Average Method 2 2.0 1 50.0 1 50.0 Organization Costs 2 2.0 - - 2 100.0 Depletion 2 2.0 - - 2 100.0 Stock Dividends 2 2.0 - - 2 100.0 Division of Partnership Profits 2 2.0 - - 2 100.0 Inventories by Lifo.Method 1 1.0 1 100.0 - - Determining Semi-Variable Costs of Joint Products 1 1.0 1 100.0 - - Franchises l 1.0 - - 1 100. Annuities 1 1.0 - - 1 100.0 Copyrights 1 1.0 - - 1 100.0 Trademarks and Names 1 1.0 - - 1 100.0 Goodwill 0 0.0 - - - - Yield on Bonds 0 0.0 - - - - aSee Appendix.J for more detailed.frequency of performance data - weekly, monthly, quarterly, semi-annually, and annually. bTotal possible responses per activity were ninety-nine. °Refers to those activities performed at least once per month. dActivities performed less frequently than monthly but at least once quarterly, semi-annually, or annually; NOTE: This table should be read as follows: Forty-four, or hh.h per cent, of the ninety-nine interviewed.performed mathematical computa- tions for F.I.C.A. Taxes; of those that.performed the activity forty, or 90.9 per cent, did so at least once per'month and four did so only once per GSA (quarterly, semi-annually, or annually). were computations for adjusting entries, regular percentages, cash discounts, physical inventory, billing custaners, cost standards, and allocation of costs to Jobs. Except for those activities primarily done at a set period of tile such as physical inventories taken yearly or state unemploynent taxes cmputed quarterly etc., the netheuatical (amputations were done at least once per month. Of those activities performed by less than 10 per cent of the technical accountants in firms manufacturing durable goods were those activities that usually give, free the writer's experience, first-year accounting students the most difficulty such as determining: sale price of equipment nanber of days inventory needed budget variances depreciation by sun-of-digite method vein-e variances cost of by-preducts lurk-down of prices inventories by weighted average method best method of financing organization costs economic order quantities division of partnership profits stock dividends inventories by ”Life” nethod goodwill depreciation by units of production yield on bonds Only one «half of the eighty-one specific mathematical activities investigated in this study were performed by more than one out of eight, 12.5 per cent, of those interviewed and nany of the lesser performed activities were done QSA. . Activities perforned :01 gig; 9}; fig. Table 29 shows that usually the technical accountants performed preportionately more specific mathematical cmputations in the smaller companies with a gradual decrease to the largest sized firms. However, the technical accountants in the fins having 50-99 employees tended to perform fewer mathematical 113L329 W10“. WLTION ACTIVITIES PM BI mm ACCOUNTANTS II FIRMS MANUFACTURING mums Goons IN TGIAL All) 3! SIZE 01' mm .._.— .— Hg— Percont Performing Ac tivity': By Size of Fin 100- 250- 50 or lath-atical Cuputations For Total 1449 50-99 2h9 7119 Here No. Technical Accountants Per Category 99 11 I 18 I 20115 l 35 17.1.0.1. Taxes hh* 100 61 so 13 29 Vacation and Holiday Pay 170* 100 so he 13 29 Data for Adjusting mtrloo to 36 28 to to 1:9 Overtile Payroll 39* 100 56 to 7 26 State Unemployment Taxos 39* 91 56 us 13 23 Federal onuployaont Taxes 39* 91 so us 13 26 Payroll by Hour or Day Rate 38* 91 so so 7 20 Payroll Tine Cards 38* 91 so 85 7 26 Percentages 37 55 22 30 33 1:6 Invoicing Gusto-ere 36 73 28 50 27 26 . Inventories by Physical Count 35 36 22 to 60 29 Payroll Job Tickets 38 6h 28 to 20 31 Cash Discounts 3t* 68 39 1:5 27 20 Uorhen' s coupon-anon 38* 91 so so 7 11 Bonuses 38 61: so to 13 23 Group Life Insurance Prelim 32* 73 56 35 7 17 bdical and Hospitalization Plan Praia-s 32* 91 his 35 7 17 Allocation of Costs to Job 32* 73 17 to 1.7 17 Using Cost Standards 31* 18 - 1:5 60 31 Allocating Costs to nopartunta 23* 18 6 20 60 20 Insurance hta 23* SS 28 1:5 - 9 Perpetual Inventory Records 23* 176 ll 15 to 20 Straight Line Depreciation 23* 36 22 25 1.7 9 Pension and Annuity Paynents 22 36 28 25 20 11: Trade Discounts 21* 55 11 35 13 1]. Determining Overabsorbed Overhead 21* 18 - 35 to 17 Gnccllectiblo Accounts 21 M 6 30 27 11; Payroll Shift Premiums 20 to 22 30 w 7 ll Detenining Underabsorbed Overhead 20* 18 - 35 33 17 Inventories by Fife Method 20* 36 22 lo 33 1h bternining the Base for metrihting Service hpartnent costs to Production 19* 18 - 30 53 Inventories by Cost or Mot Costing .19" 9 11 25 60 Depreciation by Declining Balance bthcd 9‘0 18 27 17 20 27 man 29 (continued) ‘ Percent Perfo Actiflt L By Size of Fix-n In J1 I 100- 250- 750 or lathsmatical Congtations For Total 419 50-99 2119 789 Here Interest Rseeivable 17 £6 17 15 27 6 useleseonce 17 18 - 35 27 11 cut Estimating 16* 9 - 20 1.7 11 Allocating Costs to Divisions l6 l8 - 35 26 11 Interest Payable 16* 1.6 11 29 20 6 Allocating Costs to Process 15 18 11 20 27 9 Cost-Volume Relationships 15* 9 - 15 53 9 htablishing Standards 15 18 - 25 27 11 Foreign Exchange Equivalents 111* - - 5 20 29 Inventories by Average Cost lethed 1h 9 - 20 to 9 Break-Even Analysis 13* .27 11 15 33 - Determining Whether to Hake or Bu an Item 12 27 6 10 27 6 Detersining Replacenent Costs for Equipment 12 36 - 15 20 6 Ihrk-Up of Prices 10 27 6 10 13 6 hternining the Cost of Carrying Inventories 10 - 6 15 27 6 Rent .. 9' 36 11 15 - - lbternining Sale Price for lqeipent 9* 27 - 15 2o - Detersining Run to Purchase Inventories 8 18 11 10 7 3 Detersining Budget Variances 8* 9 - 5 33 3 Hark-Dean of Prices 8 9 - 15 20 3 Determining Velune Varinnces 8* 9 6 s 27 3 Deteniung Best Hethod of Financing 8* 18 11 2o - - Determining fiat Inventories to Purchase 7 27 11 5 7 - Payroll by Per Unit or Piece 6 9 ll - - 9 Detonining Huber hys Inventory Needed 6 - 17 5 7 3 Detenining How Much to Purchase- Bconsuic Order Quantity 6 9 11 10 7 - Price-Level AdJustnents 6 9 6 S 13 3 Depreciation by SIn-Of-Digits notbod 6* 9 6 - 27 - llatenining Cost of By-Predaots , 5 9 - 5 - 9 Detenining fixed Costs of Joint Products h - - S 13 3 Deter-hing Variable costs of Joint Products g h - - 5 13 3 Payroll by Incentive Plans 3 9 ll - - - Patents 3 - 6 5 7 - TAB]: 29 (continued) Percent Perfomigg_Ac tivity L By Size of Fire Nathanatical “mutations For In 100- 250- Total _l-h9 50-99 21:9 71:9 750 or Flore Depreciation by Units of Production Gash Dividends Inventories by Weighted Average lbthod Organization Costs Depletion Stock Dividends Division of Partnership Profits Inventories by Life hthod Deternining Sui-Variable Costs of Joint Products Franchises Annuities 00PM“ Trademarks and Names Goodwill Iield on Bonds 9 a~o~o5~o~o Ill-IlO‘ O\l col-'HHHH Human» we» IIII‘OII H OI VlthlU‘ll I IU'lU'lIVtI 7 Illlllfl 3 IWIIII *The null hypothesis, ”no significant difference exists in the proportion of technical accountants perforuing the accounting activity when emu-ed by size of fire,“ was rejected at the .05 level of significance . “All per cents were rounded off to the nearest whole percent. NOTE: This table should be read as follows: his per cent of the ninety-nine technical accountants interviewed performed mathenatioal computations for P.I.O.A. Taxes. The doing of this activity was perforned by: 100 per cent of those in fine having'l-h9 employees, 61 per cent of those in firns having 50-99 uployeos, etc. “w.“ my“! 115 activities than did the adjacent smaller or larger classification. Also, the technical accountants in the firm size category of 50-99 employees did not perform many of the computations done by their counterparts in the four other firm size categories. In particular, new cost accounting mathematical amputations performed by more than 10 per cent of the technical accountants were not performed by the technical accountants in firms with 50-99 employees. when the activities were ranked in total and by size of firm according to the proportion performed, only two of the size of firm categories deviated beyond the one-third, 27 ranks, allowable difference.1 The technical accountants in fines having 50-99 employees did not proportionately perform as new cost accounting computations as did the group as a whole but did perform more purcll computations. Those technical accountants in firms having 250-710 employees were Just the opposite 3 they performed a greater proportion of cost accounting and loss payroll computations. The middle and the largest sized firm classifications did not vary more than one-third of the ranks in any of the eighty-one specific mathematical computations. 13» Appendix 3, pp. 219-221. 116 SUMMARY Prgportion Perfogigg Activities An analysis of Table 30 shows that the nine accounting functions considered in this investigation were performed to some degree by at least seven out of ten technical accountants employed in firms manufacturing durable goods. Those functions requiring routine tasks as well as those considered more advanced or complicated were performed by the least proportionate number of technical accountants. This tended to show that a technical accountant performed accounting functions somewhat more advanced than those normally done by a bookkeeper and less advanced than those done by a degree accountant. Therefore, one might say that a technical accountant was a "bridge the gap” employee. His level of activities included the entire spectrum of accounting activities frau simple record keeping to complex analysis of statements, but his major duties appeared to be somewhere between those two extremes. Although a large majority of the technical accountants did perform some phase of each function, an analysis of the individual functions, as portrayed in Table 31, revealed that only eleven of the 250 accounting activities were performed by 50 per cent or more of the technical accountants.1 It was further revealed that of the 250 selected accounting activities that could normally be taught in the first two years of post- high school education only 102 were performed by 25 per cent or more of the technical accountants in firms manufacturing durable goods. This 13cc Appendix J, pp. 196-207. PERCENT OF TECHNICAL ACCOUNTANTS PERFORMING SPECIFIC ACCOUNTING TABLE 30 FUNCTIONS IN FIRMS MANUFACTURING DURABLE GOODS (IN TOTAL.AND BI'SIZE OF FIRM) 117 Percent of Regpondents Perf By Size of Firm In 100- 250- 750 or Accounting Functions Total 1-h9 50-99 21.9 7149 More No. Technical Accountants per Category' 99 11 18 20 15 35 .Haking Financial Reports and Schedules 98.0 90.0 100.0 100.0 100.0 97.1 Analyzing Financial Reports and Schedules 7h.8 72.7 66.7 80.0 100.0 65.7 Maintaining Lodgers 89.9 90.9 9hoh 95.0 86.7 85.7 Maintaining Journals 72.7 90.9 9h-h 90.0 86.7 hOtO Initiating or Preparing Data 93.9 100.0 83.3 90.0 100.0 97.1 Recording or Posting Date 71.7 81.8 55.6 70.0 60.0 82.? Making and Using‘working Papers 79.8 90.9 83.3 85.0 86.7 68.6 Non-classified" Maintaining, Analyzing, or Performing Activities 9h.9 100.0 83.3 100.0 100.0 98.3 Doing Specific Mathematical Computations 97.0 100.0 88.9 100.0 100.0 100.0 *Refors to activities not included in the above classifications. TABLE 31 CUMULATIVE NUMBER OF ACTIVITIES PERFORMED IN EACH ACCOUNTING FUNCTION BI VARIOUS PERCEITAGFB OF TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING DURABLE GOODS Cmmlative Number Performed __ Number by Percent Technical Accountants of Below Accounting Fumtion Activities 50% 33 l/3i 25$ 20% 201 Making Financial Reports and Schedules 36 2 1h 17 22 1h Analyzing Financial Statements and Schedules 25 O 1 h 7 18 Phintaining Dodgers l6 2 S 7 8 8 Maintaining Journals ll 0 h 8 8 3 Preparing and Initiating Rte 21 h 11 16 18 3 Recording or Posting Data 9 1 S 7 9 0 Making and Using Working Papers 9 0 6 8 8 1 Non-massifiod Maintaining, Analyzing, or Performing ' Activities 142 2 7 16 23 19 Doing Specific Hathaatical Cuputations 81 0 15 19 3O 51 Total 250 ll 68 102 133 117 NOTE: This table should be read as follows: There were thirty-six accounting activities in the function of Making Financial Reports and Schedules. Two of these activities were performed by 50 per cent or more of the technical accountants; fourteen, including the two in the 50 per cent category, were performed by at least 33 1/3 per cent of technical accountants, etc. Fourteen of the activities were performed by loss than 20 per cent of the technical accountants. 119 indicates that 60 per cent of the activities included in textbooks to be taught were actually performed by loss than 25 per cent of the technical accountants in the firms represented by this study. A further analysis of the most often performed activities, Appendix J, revealed that those activities normally learned quite rapidly by students were most often performed such as r making an accounts receivable or payable schedule, analyzing accounts receivable or cmaring per cent costs to sales, maintaining accounts receivable lodgers, etc. On the other hand many activities that normally are difficult for students to comprehend were least performed such as: computing yield on bonds, goodwill, annuities, stock dividends, etc. It appears that a large portion of the more often performed activities were those more easily taught to students and those least performed scared to be the most difficult for students to master. When one considers that the most often performed activity was performed by only 61; of the 99 technical accountants, one-third of the teaching effort was not directly utilized. Over 95 per cent of the activities were performed by less than one-half of the technical accountants, which indicates an apparent current loss of teacher and student effort of 50 per cent or greater. However, it must be pointed out that few technical accountants would ever be expected to perform all the accounting job activities investigated in this study. These employed in the larger firms, over 250 employees, unless proeotod or transferred, would perform similar specialized activities each fiscal period. Therefore, the 50 per cent possible loss of learning effort as mentioned above does not indicate the actual need for training because information 120 beyond that of one's sphere of Job activities would be essential in understanding of the total business operation. at an: 2:. :22 To determine whether there were clusters of accounting activities performed according to the five size of firm categories two types of analyses were made: (1) a statistical analysis using Kendall's coefficient of concordance and Chi Squares]- and (2) a general analysis using observation, proportion, and numerical rankings. Statistical w. The rank order relationship by size of firm of the various accounting activities in each of the nine selected accounting functions was tested by Kendall's coefficient of concordance with the correction factor for ties and by Chi-Square. For each of the functions the null hypothesis, "no sigmficant difference exists between the rank order of the accounting activities in each selected function as performed by technical accountants in the various size firms," was rejected in each of the nine selected accounting functions at the .02 or less level of significance.2 Therefore, there was a significant difference in the rankings of accounting activities within each accounting function when arranged by size of firm. when each of the 250 accounting activities were tested by Chi- Square for the null hypothesis, "no significant difference wrists in the laidney Siegel, W Statistics for the Behavioral Sciences, (New Iorka HcGraw-Hill Book Company,Inc ., 19335,” 2.29-2.33 2See Appendix 1', p. 222. 121 proportion of technical accountants performing the accounting activity when culpared by size of firm," 101 of the activities were rejected at the .05 level of significance.1 This indicates that there wasa difference in proportion performed by technical accountants when . .- analyzed by the five size of firm categories for those 101 accounting activities rejected at the .05 level of significance. A further stuw of the 101 activities with a difference in proportion performed according to size of firm showed three patterns of proportion performed. First, and the scat prevalent, the technical accountants in the smaller firms, l-h9 employees, performed the accounting activities to a greater extent than did each of the succeeding larger firm size categories. Second, those activities associated with cost accounting were .most often performed in the middle size firn categories, loo-2&9 and ZED-71:9 employees, with a lesser proportion performing them in firms uploying less than 100 or more than 750 employees. Third, those activities associated with larger cmanies such as departmental reports, were performed to a lesser degree in each succeeding]: smaller firn size category. General M. An analysis of Table 30, which classified the functions performed according to size of firm, revealed a general consistency of pattern that when the per cent of a function was lower for one size of firm it also tended to be lower for the other firm size categories . Although this function pattern was somewhat consistent, 18ee Tables 13, 15, 17, 19, 21, 23, 25, 27, and 29 122 there was considerable percentile variation within and between functions in total and by size of firm. in example of this was the function of Maintaining Journals which was done by a generally lessor proportion of technical accountants in the various firm size categories but was performed by nine out of ten technical accountants in firms having 50-99 employees while by only four of ten in firms with over 750 employees. Hhon one considered all of the 250 accounting activities in total, there tended to be a gradual decrease, as the firms became larger, in the prmortion of technical accountants performing an activity. This pattern of performance generally remined the same except in firms having 50-99 employees. In this size of firm category a smaller proportion of the technical accountants performed the accounting activities than did their counterparts in the adjacent firm size categories, 149 or 1oo-2h9 employees . The only explanation to the investigator for this naller per cent of performance was that fires having 50-99 employees were large enough to begin specialization but employed outside data processing or public accounting services to perform the bulk of the accounting activities. Although there was a significant difference in the proportion performing the specific accounting activities in the five size of fin categories, no definite cluster of activities was associated with any one of then. The activities performed by at least 20 per cent of the technical accountants were performed in all size of firm categories. However, those activities associated with cost accounting were far more often performed in the medium sized firms, loo-2&9 and 250-7119 employees, while those associated with the payroll were performed more in the smaller firm size categories, l-h9 and 50-99 employees. charm VI THE FINDINGS, PART III DMWTIOH 0F svmmm cam One of the purposes of this study was to show how data could be selected from a list of Job activities to form a set of criteria that could be utilized to assist in the evaluation of the content in the accounting courses of a post-high school terminal accounting program. Selection 9; Criteria The selection of any type criterion contains the assumption that a line of discretion not be drawn. In the reading of material the reader net consciously or unconsciously determine the level of significance (line of discretion) for a particular passage or statement. This line, which one might call a “line of discretion,” can be determined by personal observation or opinion and/or an objective base. The person or persons involved in a local curricula or program study must also draw a line to assess which criteria ought to be employed in the evolution of a program. The review of literature showed that local factorsl should be considered as a base to determine a “line of discretion“ for selecting criteria to be employed in the evaluation of post-high school terminal lhofors to the service area of a post-high school educational institution. 123 12h accounting program. Some of the factors that could be used to assist in the establishing of a line of discretion for selecting criteria to evaluate such accounting programs are: (1) current and projected local job market for technical accountants, (2) in-service training programs used by the fines, (3) use of outside data processing services by firms for accounting data and reports, (h) objectives of the post-high school educational institution, (5) facilities available , (6) staff available, (7) accounting functions and activities performed by technical accountants, (8) availability of interested students, etc. The use of job activities has been an accepted criterion, along with others, employed in the evaluation of a terminal program of study in educational institutions. Consequently, this study used as a base the accounting functions and activities performed by technical accountants uployed by firms manufacturing durable goods in the tri- county area. From these functions and activities an attempt was made to select criteria that could be used to evaluate content in the accounting courses in a post-high school terminal accounting program (Figure 3). A line of discretion was drawn to determine which of the 250 accounting-type activitiesl investigated should be included. this line of discretion was based on the following series of analyses of the data: (1) the proportion of technical accountants performing the activity, (2) the rank order, by performance, of the activities in total and by size of firm, (3) the frequency of performance, and (h) the universality of performance of the activities by the technical accountants in all size of firm categories. ,A "W“ 125 FIGURE 3 AN EVAIDATIVE GRITEIIOH BI WHICH POST-HIGH SCHOOL PERSONNEL CAN EVAHIATE OR 1mm comm OF TECHNICAL ACCOUNTING PRmRAMS Fm DURABIE GOODS MANUFAC PART I: ACCOUNTHG ACTIVITIES CLASSIFID BI SELECTED ACCOUNTING CRIS FUNCTIONS Financial Statements, Repgrts, an_p_d Schedules Financial Statements Balance Sheet Incase Statement Cost of Production Capital Statement (Including Retained Earnings) Consolidated Statements Source and Application of Funds Cash Flow Statement Schedules Accounts Receivable Accounts (Vouchers) Payable Manufacturing Expense Cost of Goods Sold Haterials Consumed Cost of Goods Manufactured General and Administrative Expense Selling hpense Reports-Tax F . I. C .A. hployee Withholding Federal Unemployment Cupensation State Unemployment Compensation State Sales Property Federal Excise Company Incaae Reports -General Efficiency Credit Rating Alternative Cost Departmental 1A list by function of evaluative criteria from activities performed by technical accountants in firms manufacturing durable goods in the tri-oounty area. . ' "1‘ ’5’“ Budgets Production Operating Cash Anglygig.ggg_Interpretation g£_Financial Statements Percentile Analysis Costs to Sales Expenses to Sales Return on Investment Increase or Decrease per Item Ratio Analysis Receivables to Sales Current Ratio Comparative Analysis Income Statements Balance Sheets General Analysis Accounts Receivable Accounts Receivable Turnover Ayerage Collection Period on Receivables Average Cost Per Unit Manufactured Average Cost Per Uhit Sold Inventory'Turnover working Capital Maintaining Loggers General Ledger Subsidiary'Ledgers Accounts Receivable .Accounts or vouchers Payable Payroll Plant (Fixed Asset) Materials or Stores Finished Goods Factory' Cost Expense notes Receivable or Payable m _Jmnals General Journal 126 127 Special Journals Sales Cash Receipts Check Register Purchases Voucher Register Sales Returns and Allowances Petty Gash 2222.115: 529. 922132.123 at: Journal htries or Journal Vouchers for Normal Transaction mtries Adjusting mtries Closing nitries Correcting Entries Reversing Entries Explanations on all Entries Cost Accounting htries Direct and Indirect Cost htries Purchases of mterials htries Issuance of Materials Return of lhterial to Stores Record Scrap and Waste Materials Record hfective Work Adjust Inventory Cards General Expense Accounts Bank Deposits and Reconciliations . Withholding Tax Fons (it-2 , H-h) Data for Storage in Electronic Equipnent Insurance Forms Supplies Inventories Tax Valuation Sheets Recong 25 Posting 11:35 To General Ledger To Subsidiary Ledgers Miscellaneous For Purchase of Materials For Issuance of Materials 128 12m: 9.2 Max yam _22_Pa 1" 2.0.1:. Financial Statements Work in Process (Cost Sheets) Tax Reperts Depreciation Allocating Costs Insurance Expiraticns PART II: ACCOUNTING ACTIVITIES rmm AS WILL TM? NORMALLI CLASSH'IE AB AGGWITING GEL! FUNCTIONS lion-Classified Antietam, M, _o; Pertoflg Activities Cost Accounting Activities Maintain Job Cost Sheets Analyze material Cost Variance Analyze Labor Cost Variance Analyze Indirect Costs Cmpare Costs with Budget Analyze Overhead Cost Variance Determine Estimated Costs Compare Manufacturing and metributing Costs Determine the Base for Distribution of Service Department Costs to Production Maintain Haste, Spoilage, and flirinkage Records Maintain Perpetual Inventories Record Keeping Activities Verify Balances of Control Accounts with Subsidiary Ledger Check Postings and Totals Foot and Balance ledger Accounts Foot, Balance, and Total Columns in Special Journals Maintain withholding Tax Records Rule and Balance Accounts Maintain Insurance Records (expiraticns and premiums) Maintain State Sales Tax Reeords Maintain Departmental Records 129 Miscellaneous Check Creditor Invoices and Statuents Analyze Sales Handle Collection of Outstanding Debts Analyze Distribution Costs Analyze Administrative Costs Authorize Payment of Vouchers Handle Promissory Notes Act as a Paying Cashier Audit Internal Accounting Activities PART III: AGGWNTING ACTIVITIES BASED ON MATHEATIGAL announces Mathauatical Mutation Activities {2; Payroll Deductions F.I.C.A. Taxes Group Life Insurance Preliuns Medical and Hospitalization Plan Premiums Payroll Vacation and Holiday Pay Overtime Payroll Payroll by Hour or my Rate Payroll Tine Cards Payroll Job Tickets Bonuses Payroll anift Preniuns Deployer' s Payroll Costs Cost State Unenployment Compensation Taxes Federal Unemployment Compensation Taxes Uorlnaen' s Compensation Pension and Annuity Payments Accounting mta Physical Inventories Allocation of Costs to Job Allocation of Costs to Departments Using Cost Standards Perpetual Inventories Straight Line Method Depreciation Declining Balance Method Depreciation Determining Overabsorbed Overhead Determining Underabsorhed Overhead Using FIFO Method of Inventorying Using Average Cost Method of Inventorying Using Cost or Market Costing for Inventories 130 Determining Base for Distributing Service Department Costs to Production Obsolescence Cost Estimating Allocation of Costs to Divisions Allocation of Costs to Process Cost-Volume Relationships Establishing Standards Determining Whether to Make or Buy an Item Miscellaneous Data for Adjusting mtries Use of Percentages Invoicing Custaeers Cash Discounts Insurance mta Trade Discounts Unccllectible Accounts Interest Receivable Interest Payable NOTE: These accounting-type. activities investigated in this study but not included in this evaluative criterion due to the lack of performance by technical accountants in firm namfacturing durable goods can be observed in Appendix U, pp. 223-2214. 131 main m activities. For this study a line of discretion was drawn to include all those activities perforeed by at least one out of eight of the technical accountants interviewed. In the attenpt to draw this line of discretion for inclusion or exclnsion Ira the list of 250 researched activities, a series of analyses were node dealing with the proportion of technical accountants that performed each activity. For example, if only those activities performed by fifty per cent or more of the technical accountants were to be included in the list of criteria, only eleven of the 250 activities would have been selected with 239 activities excluded. The excluded iteus (96$) wwld surely include new activities that should be employed to evaluate a technical accounting program. Similar analyses were ends of those activities perforaed by the 33 per cent, 25 per cent, and 20 per cent of the technical accountants respectively and they portrayed a situation similar to that of the 50 per cent tentative cut-off line in that sees apparently necessary evaluative activities were excluded from a list of criteria. Therefore, those activities performed by a 1_o_s_s£ proportion of technical accountants such as, one out of six, one out of eight, or one out of ten technical accountants were then analyzed individually by the other analyses mentioned prior to final selection for the evaluative criterion list. Rank order 9; activities. An analysis of the rank order of the various activities presented a picture sinilar to the I'proportion performing the activities." Those activities ranked in the top 50 per l.— _l._‘-—— r. 132 cent of ranks were also perfornod by noro than one out of five technical accountants.1 the activities ranked in the bottola 25 percentile were also performed by 10 per cent or less of the technical accountants onloyed by fires nnufactnring durable goods . This double ouparison, by "proportion performing' and by I‘ranl: order, " shows that 25 per cent of the accounting activities were performed by one out of ten or less of these technical accountants. Universality 9.; performance. Analysis revealed that in general, all activities porfonaed by 20 per cent or more of the technical accountants in total were also perforsed by the technical accountants in each size of fire category. he to the availability of contracted outside assistance or in-service training progress in the holler and largest fires. respo ctively, those activities performed by less than 20 per cent of the interviewees were analysed prinarily by the porforsanco in medium sized fires.2 In the attelpt to draw a discretionary line for inclusion or exclusion of activities for the evaluative criteria list, an analysis of the proportion of technical accountants performing the activities by size of fire was necessary. This analysis centered around two pieces of data neither of which were directly a purpose of this study. All the firms with 750 or more employees had in-oervice training programs for up-dating and up-grading their accountants and hence, were geared to do 413» Appendix J, pp. 196-207. zMediun sized rim included those with 100 to 7&9 elployees. 133 part of the educational process on the Job. Most of the firms with less than 100 uployees contracted outside data processing services and/or public accounting services who could perform the oonplicated and selda performed activities. The two middle size categories, 100-2h9 and 250- 71;? employees, did not employ data processing services, did not have established up-grading or training sessions, and did not employ public accountants except for annual audits and reports. Therefore, technical accountants employed by median sized firms, 100 to 7&9 employees, needed more training at the time of upleyment than those in the naller or larger sized firms. Freggencz of performance . These activities performed by less than 20 per cent of the technical accountants were analysed on frequency of performance (how often) with those seldoa performed, QSA, (quarterly, semi-annually, or annually) considered as being the least important. Although no attempt was made in this study to classify activities into a priority listing by importance to «players, it was felt by the Jury panel]- that industry was most concerned that's new employee be able to perform those I'ofton performedfl activities without further assistance or training. my. Considering the proportion performing an activity, the rank order of performance, performance by size of firm, and frequency of perfomnce, those activities deoned essential for a criteria listz lSoe Appendix E, p. 183. 28.. rim. 3, We 125.130e 13h t0 OValuato a post-high school technical accounting progron were: . . . Performed by more than one out of eight technical accountants interviewed. . . . Ranked in the top 50 per cent by proportion performed. . . . Performed in all firm size categories. . . . Given preferential treatment when performed primarily in medium sized firms. . Those of the 250 accounting-type activities not included on the evaluative criteria list sci-st? . . . Performed infrequently, QSA. . . . Performed by less than one out of eight tochMcal accountants . . . . Performed primrily in either firms having less than 100 or more than 750 employees. 1See Appendix U, pp. 223-225. CHAPTER VII SUMMARY, CONCLUSIONS, AND RHICMMENDATIONS NATURE OF THE STUDY This smdy was an investigation to analyze accounting activities performed by technical accountants in order to arrive at a set of criteria of Job activities that could be employed in appraising the appropriateness of the accounting courses in a terminal accounting program in a cmmmnity college or other post-high school educational institution. bro specifically this investigation attempted to: 1. 2. 3. h. Ibtermiue the current and projected need for technical accountants. Establish a list of accounting-type activities performed by technical accountants. 'lhtermine, according to size of firm, if there were clusters of accounting-type activities performed by technical accountants. Establish, from: the list of accounting-type activities, selected criteria that could be used to assist in the appraising of the accounting courses of a technical accounting program. Translate the selected Job activity data, performed by the technical accountant, into a set of evaluative criteria that a post-high school institution could employ to assist 135 136 in appraising the accounting courses in its terminal accounting program. Need 32;; 393 Study The basic need for this study developed out of the consideration given to the following facts and assumptions regarding terminal accounting programs in post-high school educational institutions: 1. 2. 3. 1t. 7. There was no large scale study showing the Job possibilities in accounting for the graduate of a post-high school teminal accounting curriculum. Previous studies have not concerned themselves with the post-high school terminal accounting program. Post-high school terminal accounting programs need to be adapted to the Job market. Commnity college accounting curricula are not always geared toward the terminal student desiring employment upon the completion of the program. There is an apparent need for the developnent of programs for training post-high school, non-baccalaureate degree, technical accountants. Current employers tend to prefer workers who enter the labor market to be older and to possess a great degree of occupational preparation in their specific field. Educational instructors and leaders, prospective students, and the general public need to be alerted to current information about accounting functions and activities that could be performed by prospective graduates of a two-year post-high school educational mtimtjflne limitations 3; _th_e Study The study was limited to those firms unufacturing durable goods in a tri-county (Clinton, Eton, and Ingham) area in Michigan. It was farther limited to include only those employees for which the following was approposx 137 (l) The uplcyee was full-time and his primary function was that of performing accounting-type activities. (2) The employee was in a position for which the employer would consider post -high school, non-baccalaureate degree, accounting education sufficient for initial employment. (3) The employee was in a position from which the employer would consider promotion or advancmeent possible. METHODANDPROCEDJRB The study was divided into four tasks for the collection and analysis of data. The Mam email questionnaire to survey122 firms manufacturing durable goods in a tri-cosnty area in fichigan (Clinton, Eaton, and highest) to determine (1) the number engaged in accounting- type work for which a baccalaureate degree was not a basic rewiruent for deployment, and (2) the current and projected need for technically trained non-degree accountants. The questionnaire was mailed to the top local administrative officer in each firm and with follow-up letters and telephone calls a 100 per cent response was obtained. The m 23! was to assess what accounting activities were performed by technical accountants. The accounting activities performed were determined by a personal interview with each of the ninety-rune stratified randomly selected sample (by size of firm) of technical accountants from a total population of 222. These technical 138 counntonts were described by management as fulfilling four basic requiszltes: (1) they were employed full-time as a technical accountant; (2) they had been employed as a technical accountant a mininum of one year: (3) they were in positions for which a post-high school accounting education was necessary but for which a baccalaureate degree was not a prerequisite; (h) the firm's administrative officers considered these technical accountants promotable and did not consider them in a static position replaceable by mechanical equipent. A Chi-Square test was used to determine goodness of fit of the total sample and of the ninety-nine selected respondents. The M 23!. was to analyze the responses fru the ninety-nine interviews conducted in Task II to establish a list of accounting job activities performed by technical accountants. Due to the methodology and purpose the primary type of analysis was based on the actual number and per cent of technical accountants performing an activity. However, when the proportion performing a function or activity was considered by size of firm two statistical tests were used. A Chi-Square analysis was performed to test the all hypothesis, ”No significant difference exists in the proportion of technical accountants performing an accounting activity when cmparsd by size of firm" using a rejection level at the .05 level of significance, and the null hypothesis, I'lio significant difference exists between the rank order of the accounting activities in each selected function as performed by technical accountants in the various size firms“ was tested by Kendall's Coefficient of Comordance with a correction factor for ties and Chi-Square using a .02 level of significance as the 139 r030¢tion level .1 Tho m _tasl was the establishing of a set of criteria that could be used to assist evaluators in the appraising the adequacy of the accounting portion of a post-Mgh school terminal accounting progran. Four analyses were nado on the 250 accounting-type activities investigated in this study to ascertain a useable cut-off Eli-23. as to which activities should be included or excluded on such a criterion list. The four analyses were: (1) the proportion of technical accountants performing each activity, (2) the rank order by perforunce of the activities in total and by siso of firn, (3) the frequency of performance for each activity, and (h) the universality of porfornanco of each activity by technical accountants in all size of firn categories. FINDINGS Allfindingsinthis studyrelate to the firnsnanufaotnring dnrable goods in the Tri-County area and the technical accountants euployed by those firms. LEE Lug current _D_a_t§_ Related t_o Technical “county Positions 1. here is in the fin nannfacturing durable goods a position that could be called a ”technical accountant” or ”accounting’technician." considerable confusion existed as to who ought to be called a bookkeeper or an accountant; sane bookkeepers perfoned the tasks of accountants and vice-versa. Hany individuals, though celled bookkeepers or accountants, were performing accounting tasks on the fringe area lama, 32. 91.1., p. 231:. 11:0 homily considered between the two positions-u-thoy are actually technical accountants. 2. Canercial data processing services were not used by any durable goods manufacturing firn having more than 100 employees. 3. The total accounting positions increased from 1960 through 1965 in the tri—county fins namfacturing durable goods. The total accounting-type positions increased 28.1 per cent whereas the subclassification of technical accountants increased 30.6 per cent. h. The greatest increase of technical accountants during the 1960 to 1965 period appeared in the niddle sine fires, those having 50 150 7139 uployees. 5. Most fine (87%) indicated a scarcity in the past and present supply of technical accountants in the Tri-Oounty area. (Scarcity as used here referred to the difficulty in locating qualified technical accountants as indicated by adeinistrative officers of the firms. In sale cases when desired personnel could not be located the firms employed a data processing service.) Projected M £9; Technical Accountants 6. Two out of every three fir-s indicated an anticipated increase in the employment of technical accountants at least until 1970, the period. of this study. For this four-year period preceding 1970, there was an anticipated need for an additional 208 technical accountants (approximately 52 per year) in Tri-county firms mnufacturing durable goods. The anticipated need of 208 technical accountants was a total replace-eat or increase of 91; per cent of the present work force. lhl 7. Primarily the naller firms (100 or less employees) anticipated 'no chango'I in technical accounting positions to 1970. Only one firm with nore than 100 employees anticipated 'no change” in technical accountant onploynent. 8. Seven out of ten enployere preferred technical accountants specifically trained for nannfacturing fins over those generally trained in a regular post-high school tersinal accounting program. This tendency was greater for smaller firms, less than 100 employees. _Pg_tu_r_3 3; Technical Accountants 9. Five out of every seven finus indicated that techmnal accountants were proactabie. or the fifty rim (70.1.20 that indicated pronotion was possible for technical accountants, twenty-seven indicated the level of pronotability to be either first or second line supervision; eleven indicated the management level; three indicated the executive level; and nine could not predict. 16. The seven firms (161) that indicated pruotion was not possible for technical accountants were: (a) single propriotorahips or partnerships too small to have a supervisor, or (b) a fanily owned busimss where the hiring of relatives was practiced. coun Functions and Activities Perfomsd by______ Technical Accountants m_ Finns mastur‘r___ Durable 63m 11. The activities performed by the largest proportion of technical accountants were also performed nest often, while those least performed were done so primarily once per QSA, (quarterly, semi-annually, or annually). 1&2 12 . Ninety-seven of the ninety-nine technical accountants made at least one financial report or schedule during the past year. However, the report or schedule nest frequently made, the schedule of accounts receivable, was performed by only six out of ten of the techical accountants. This diversity was quite collision as evidenced by the fact that the balance of the reports were perfomed by one-half or less of the technical accountants. 13. Host of the financial reports and schedules were made monthly—about two out of three were nude primarily at least once per month. 11:. 0f the financial reports and schedules not made at least monthly, nest were govermental reports, annual reports, and long-tern budgets. 15. Three out of four technical accountants did perform some type of analysis and interpretation of financial reports and schedules. However, the single nest performed analysis and interpretation activity was the analysis of accounts receivable by four out of ten technical accountants. The balance of these activities were performed by less than one out of three technical accountants. 16. Nine out of ten technical accountants were responsible for naintaimlng some type of a ledger. However, the accounts receivable, accounts (vouchers) payable, payroll, general, or plant lodgers were the say lodgers maintained by more than one out of three technical accountants. 17. Seven out of ten technical accountants were responsible for the maintaining of some fern of Journal, but less than one-half of the r:- 71?"! éfi.'H».— - a no as. t- M 11:3 technical accountants were responsible for any one particular journal. 18. Heat (91%) of the technical accountants had to initiate or prepare data for permanent records. The nest performed activity in this category was the preparing of basic Journal entries or Journal vouchers by two out of three technical accountants. The making of correcting entries was ranked second of the activities in the proportion performed by technical accountants in this function. 19. Seven out of ten technical accountants porfornod ems recording or posting function but the most perforned activity, posting adjusting entries, was performed by only five out of ten technical accentuate. 20. Eight out of ten technical accountants employed ems fern of working papers to assist then in performing the accounting activities . Working papers for the trial balance, financial statonents, and work in process were nest employed by technical accountants with hh, hh, end 143 per cent respectively doing so. 21. Host (95$) of the technical accountants also performed accounting duties not classified as nornel accounting-cycle activities. The most porfornod activities in this category were these that could be taught in a short period of tine, such as "to verify balances with control accounts.‘ One-third of the activities performed by technical accountants in this category were considered activities related to cost accounting. 22. The mathemtical constitutions nest perfenued by technical accountants were related to payroll or payroll tans. The least perfornod (by loss than 10 per cent of the technical accountants) 11th mathematical computations were those most difficult for accounting students to comprehend, such as the sum-of-the-digits method of figuring depreciation. 23. These activities performed by the greatest proportion of technical accountants in firms manufacturing durable goods were those that can be learned quite rapidly such as: making accounts receivable or accounts payable schedules, comparing per cent costs to sales, etc. 21;. These activities performed by the 193st proportion of technical accountants in firms manufacturing durable goods were these often considered difficult for students to master, such as computing yield on bonds, goodwill, annuities, etc. Accounting Activities Performed by Technical Accountants Accorg_i_ng__ to $.23 g_f____ theFims Manufacmriggw Durable Gee___g_s 25. Generally, the smaller the firm the greater the proportion of technical accountants that performed an activity. As firms became larger, a lesser proportion of technical accountants performed the activities. This could be explained by the fact that when one works for a larger firm more specialization is practiced. 26. These activities performed by at least one out of five technical accountants were also performed by technical accountants in each of the five size of firm categories. 27. The cluster of activities related to payroll was performed by a considerably larger proportion of technical accountants in firms having less than 100 onloyees. 28. The cluster of activities related to cost accounting was performed by a larger proportion of technical accountants in the 1&5 middle sized firms, 100 to 71;? employees, than by those size firms with less than 100 or more than 750 uployees. 29. These activities related to department or division reports were most often performed by technical accountants in the largest sins of firm categories with a lesser proportion in each smaller size category. 30. Those accounting activities normally considered routine, of a record keeping nature, were performed most in snmller firms by technical accountants and to a lesser degree in each succeedingly larger firm category. CONCLUSIONS The conclusions of this investigation are based on an analysis of the findings and are presented in three parts: (1) the initial investigation determining the existence of technical accountants and the current and projected need for technical accountants, (2) the identification of accounting activities performed by technical accountants in total and by size of firm, and (3) the application of data for use by post-high school educational institutions. These conclusions relate only to: (1) firms manufacturing durable goods in the tau-county area; (2) accounting-type activities as performed by technical accountants uployed by firms manufacturing durable goods; and (3) post-high school terminal accounting courses for training technical accountants for the durable goods manufacturing industry in the tri-ceunty area. 1146 conclusions 32222 93 the; Initial Investietien l. more is an accounting position that can be identified as one in which the activities performed tend to "bridge the gap'. between the bookkeeper and the accountant. 2. The position of technical accountant is net cmplotely consistent. Those employed in such a capacity do not perform exactly the sane set of activities. 3. There is a great enough need for technical accountants to warrant an educational program in the tri-county area for the training of a siseable number of technical accountants. h. Individnals who undertake an educational program to been a technical accountant will have, coupled with experience, sufficient training to be proeotable to first or second level supervisory positions and in one fins to nanagenent or executive level positions. Identification g_i_‘_ Accounlng Activities Perforned by Technical Accountants 1. A profile of the identifiable accounting-type activities perfumed nest often by technical accountants in tri-county fires nanefacturing durable goods is potentially useful as a guide in the determination of content for terninal accounting courses desigmd for initial training, in-service training, or up-grading of technical accounting onployeee for fires namfaoturing durable goods. 2 . The technical accountant does perfore sue activities which have been considered duties of a bookkeeper as well as sale of which have been considered duties of a baccalaureate degree accountant but can basically be considered as a position suewhere in between the two. 1h? amour, the activities are not caepletely comon to all technical accounting positions but do tend to cluster according to size of firm. macation g_f_ g2 £21; PostoHigh M Educational Institutions 1. There appears to be an ever present need to evaluate continually the content and scope of the accounting courses in a terminal accounting program. 2. Accounting-type activities performed by technical accountants in the Tri-Gounty firms manufacturing durable goods can be arranged into a set of criteria that could be used to assists (1) in the evaluation of content or scope of the accounting courses in a post-high school terminal accounting program, (2) in the evolution and selection of textbooks for use in terminal accounting courses, and (3) personnel performing a guidance function with those interested in technical accounting. 3. There is a need for terminal accounting instructors to work closely with employers so they will be ”on top" of changes or anticipated changes in the Job narket from both the need for technical accountants and Job activities performed. RECMIENDATIONS The following recommendations are derived from the findings and conclusions of this investigation as well as on the assumption that the current economic level of business operation will continue. For the purpose of clarity, the recmendations are presented in two sections: (1) general reco-ndations, and (2) educational implications for application of findings and conclusions. 11:8 Mm Recomndations 1. There is a need in the Tri-County area for post-high school propane (curricula) geared toward the training of technical accountants for firms eamfacturing durable goods. Those propane should be designed to produce thirty to fifty graduates per year if the local projected needs are to be not. Considering the normal educational drop and failure rate in post-high school technical curricula, from sixty to eighty students nay have to enroll yearly in order to graduate this needed number. 2. There is a need to use an evaluative set of criteria based on current and projected job infornation, sinilar to that presented in Figure 3, to assist in the planning and evaluating post-high school accounting courses in the terminal accounting propan. 3. There should be a set of technical accounting evalnative criteria established for the service area of each post-high school edllcaticnal instimtion and these criteria should be constantly updated. h. Post-high school educational institutions should consider establishing in-service, refresher, retraining, or updating courses for the following type individuals so they can more readily propose in a satisfactory nanner in the nechanized business world: a. Merienced bookkeepers with only high school training. b. Graduates of post-high school terminal accounting propane. c. hployees who learned their skills on the job. d. Individuals who nay need retraining due to having been or are likely to be replaced by electronic data processing. -; .7 +" am a .e _ 1h? 5. Thie study should be replicated in procedure using as a base other fields of mapleyment such as retailing and distribution, governent, service ,. and non-durable nanufacturing to see whether there is a body of accounting knowledge and activities canon to technical accountants in all give areas. 6. There is a need for a study to isolate those competencies needed to adequately perfcna the duties and responsibilities of the position of technical accountant. M We. in research and more specifically any list of criteria is of little value without a purpose and a tentative plan for its use or application. This study was no exception. The list of evaluative criteria (Figure 3) could be employed to assist in the (1) evaluation of content in technical accounting courses by instructors or the departIent head, (2) establisheent of teaching goals for technical , accounting courses, (3) evaluation of textbooks to be used in technical accounting courses, (1;) guidance function performed by educational personnel in helping individuals in the naldng of a career choice, and (S) cunnicating, by uployers, the pre-enploynent requirenents for technical accounting personnel. 92912.9. and; new content evaluation. Instructors and department heads should be concerned about their involvement in a continuous evaluation of the propan or programs of an educatioml institution. Those involved with terminal propane should be even more concerned because their product, the grachutes, my be employed in productive 150 positions without further educational assistance. The true evaluation of W teminal vocational progran is the ability of its paduates to assuee productively their position in the labor market. Ifaterminlaccountingprogranistoneetthe currentand projected need for technical accountants, those evaluating the accounting content of such a progran not have up-to-date data by which to perforn the evaluation. Therefore, a continuous evaluation program ought to be carried on to assure adequate pro-employment training for current and projected positions. This evaluation can be done subject- ively or objectively with the latter the nest reliable but it depends upon the availability of a set of objective evaluative criteria arrangedinuseable fore. Fol-this reason, Figurehwasdesignedto show one possible arrangement of the data from the list of evaluative criteriel that could be employed to assist the instructors or the departeent head in the evaZInatien of accounting content in a post-high school technical accounting program for fires nanufacturing durable goods. The accounting courses in a technical accounting program intended to equip a student for futm'e eeploynent in the tri-county durable goods manufacturing industry ought to cover the activities listed in Figure 14 so that the technical accountant can perfone these activities on the job with little or no additional instruction. Consequently, if a course (or courses) is said to be designed so that a graduate can successfully perform the activities within the limited realn lsee Figure 3, pp. 125-130. 151 FIGURE b PROPOSED INSTRUMENT FOR EVALUATING ACCOUNTING CONTENT IN A POST-HIGH SCHOOL TECHNICAL ACCOUNTING PROGRAM FOR FIRMS MANUFACTURING DURABLE GOODS IN THE TRI-COUNTI AREA Directions: For each activity indicate with an "X" in one of the four columns the answer most representative for graduates of your program. Explanation of columns: A. Without Direction - has ability and experience to perform this activity without assistance. B. With Direction a has some experience or practice and can perform the activity with a little guidance or direction. C. With On-the-Job Training = has adequate background so that with further training on the job can perform the activity. D. Not Covered in Program - those activities not taught or covered in the program. PART I: ACCOUNTING ACTIVITIES CLASSIFIED BY SELECTED ACCOUNTING CYCLE FUNCTIONS Program Graduate Can Perform Not With Covered Without With On-the-Job in Accounting Activity by Function Direction Direction Training Program Financial Statements, Reports, and Schedules Financial Statements Balance Sheet . . . . . . . . . . . . Income Statement . . . . . . . . . . Cost of Production . . . . . . . . Capital Statement ’Including detained Consolidated Statements . . . . . . . Source and Application of Funds . . . Cash Flow Statement . . . . . . . . . Schedules Accounts Receivable . . . . . Accounts (Vouchers) Payable . Manufacturing Expense . . . . Cost of Goods Sold . . . . Materials Consumed . . . . Cost of Goods Manufactured General and Administrative Expense Selling Expense . . . . . . . . . . Reports-Tax F.I.C.A. . . . . . . . . . . . . . . . . . . . Employee Withholding . . . . . . . . . . Federal Unemployment Compensation State Unemployment Compensation State Sales . . . . . Property . . . Federal Excise Company Income Budgets Production , . . . . . . . . Operating Cash . . . e e e e e e e g e e O O 0 I C e O 0 e e e e e e e e e e e e 0 e e e 0 e e 0 e e 0 e e 0 e o e NOTE: Reduced in scale for dissertation binding purposes. FIGURE h (continued) PART I: (continued) 152 Accounting Activity by Function Program Graduate Can Perform Without Direction With Direction With On-the-Job Training Reports-General Efficiency . . . . Credit Rating . . . Alternative Cost . Departmean . . . Analysis and Interpretation gf Financial Percentile Analysis Costs to Sales . . . . . . . Expenses to Sales . . . . . . Return on Investment . . . . Increase or Decrease per Item Ratio Analysis ”Gamble: to &1e3 O O O O 0 0 Current Ratio . . . . . . . . . . Couparative Analysis IncomeStatements........ Balance Sheets . . . . . . . . . General Analysis Accounts Receivable . . . . . . . . Accounts Receivable Turnover . . . Average Collection Period on Receivables Average Cost Per Unit Manufactured Average Cost Per Unit Sold . . . . Inventory‘l‘urnover WorkingCapital.......... w L__s___ed era General Ledger 0 C O O O I O Q C O O . Subsidiary Ledgers Accounts Receivable . . . . . Accounts or Vouchers Payable Payroll . . . . . . . Plant (Fixed Asset) . Materials or Stores . Finished Goods . . . Factory. . . . . . . wt 0 O I O O O O 0 Notes Receivable or Payable new _szrnals wneral Jon-I. ml 0 O O 0 O O O O O O O Statements H h— 153 FIGURE 1; (continued) PART I: (continued) Program Graduate Can Perform Not With Covered Without With On-the-Job in Accounting Activity by Function Direction Direction Training Program fincial Journals Sales . . . . Cash Receipts . Check Register Purchases . . . Voucher Register .. . Sales Returns and Allowances . . PettyCash ........... Ermine ass ____Mtiati Law Journal Entries or Journal Vouchers for Normal Transaction Entries . . Adjusting Entries . . . . . . ClosingEntries. . . . . . . Correcting Entries . . . . . Reversing Entries . . . . . Explanations on All lam-m Cost Accounting Extries Direct and Indirect Cost Entries Purchases of Materials Entries . Issuance of Materials . . . . . . Return of Material to Stores . . Record Scrap and Waste Materials Record Defective Work . . . . . . Adjust Inventory Cards . . . . . General ExpenseAccounts ............ Bank lbposits and Reconciliations . . . . fithholding Tax Forms (ll-2, W—h) . . . . mm for Storage in Electronic Equipment InsuranceForms........ Sipplies Inventories . . . . . Tax Valuation Sieets . . . . . Bacardi—11g 9; Poem Data To General Ledger L l l J_ J To Subsidiary Ledgers L 1 1 l 1 mscellaneous ForPurchaseofHaterials . . . . . . . . . . . ForIssuanceofHaterials. . . . . . . . . . . FIGURE h (continued) 151: PART I: (continued) Acccmnting Activity by Function Program Graduate Can Perform Without Direction With Direction ' With On-the 4 ob Training Not Covered Program was arr—<1 Vega Working Papers £9; Financial Statements . . . . Work in Process (Cost Sheets) Tax Reports Depreciation . . . . . . . . Allocating Costs . . . . . . Insurance Expirations . . . . PART II: ACCOUNTING ACTIVITIES PMORMED AS ACCOUNTING CYCLE FUNCTIONS SPECIAL TASKS--NOT NORMAILI CLASSIFIED AS Non-Classified Maintaini_ng, Analyzinj, gr; Perfo Cost Accounting Activities Maintain Job Cost Sheets . Analyze mterial Cost Variance . Analyze Labor Cost Variance . . . Analyze Indirect Costs . . . . . Compare Costs With Budget . . . Analyze Overhead Cost Variance Determine Estimated Costs . . . . Canpare Dhnufacturing and Distributing Costs. Determine the Base for Distribution of Service Department Costs to Production . . . . . . Maintain Waste, Spoilage, and Shrinkage Records mintain Perpetual Inventories Record Keeping Activities Verify Balances of Control Accounts with SubsidiaryLedger ............ CheckPostingsandTotals. . . . . . . . . . . Foot andBalance Ledger Accounts . . . . . . . Foot, Balance, and Total Columns in SpecialJournals....... Maintain Withholding Tax Records . RuleandBalanceAccounts. . . . . Maintain Insurance Records . . . . Maintain State Sales Tax Records . Maintain lbpartmntal Records . . . Miscellaneous Check Creditor Invoices and Statements AnalyzeSales ............ Handle Collection of Outstanding Debts Analyze Distribution Costs . Analyze Administrative Costs Authorize Payment of Vouchers Handle Promissory Notes . . . ActasaPayingCashier........ .. Audit Internal Accounting Activities . . . . . Activities r?“ W. WW ' .zV—‘A'E' -sva, N _ ——-— ‘IJ'J 1;. A. FIGURE h (continued) 155 PART III: ACCOUNTING ACTIVITIES BASED ON MATHEMATICAL COMPUTATIONS Covered Program Graduate Can Perform With Without With On-the-Job Accounting Activity by Function Direction Direction Traipingd Mathematical Computation Activities :2; Payroll Deductions F.I.C.A. Taxes . . . . . . . . . . . . . . . Group Life Insurance Premiums . . . . . . . . Medical and Hospitalization Plan Premiums . . Payroll Vacation and Holiday Pay . . Overtime Payroll. . . . . . . Payroll by Hour or Day Rate . Payroll Time Cards . . . . . Payroll Job Tickets . . . . . Bonuses . . . . . . . . . . Payroll Shift Premiums . . . O 0 O O O I O o e e o e O o e 0 0 e 0 s O 0 O I e o e O Employer's Payroll Costs State Unemployment Compensation Taxes Federal Unemployment Compensation Taxes Workmen's Compensation . . . . . . . . Pension and Annuity Payments . . . . . e 0 0 e e e e e 0 Cost Accounting Data Physical Inventories . . . . . . . . Allocation of Costs to Jdb . . . . . Allocation of Costs to Departments . Using Cost Standards . . . . . . . . Perpetual Inventories . . . . . . . . Straight Line Method Depreciation . . Declining Balance Method Depreciation Determining Overabsorbed Overhead . . Determining Underabsorbed Overhead . Using FIFO Method of Inventorying . . Using Average Cost Method of Inventorying . Using Cost or Market Costing for Inventories Determining Base for Distributing Service Department Costs to Production . . Obsolescence . . . . . . . . . . . CostEstimating.......... Allocation of Costs to Divisions Allocation of Costs to Process . Cost-Vblume Relationships . . . . Establishing Standards . . . . . Determining Whether to Make or Buy an Miscellaneous Data for Adjusting Entries Use of Percentages . . Invoicing Customers . . Cash Discounts . . . . 0 e e e e e e e e e e e e e e e e e e e e e e e e e e e e e I O O I O O O I Insurance Data . . . Trade Discounts . . . Uncollectible Accounts Interest Receivable . . Interest Payable . . . e e e e e e e e e e e e e e 0 e g e e e e e e e e e 0 e e e o e o g 0 e e e e e e e e e e g s e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e a e e e e e e Proggam _l 156 of that discipline, those evaluating such a program should find the colum entitled llWithout filroction'I in Figure i: checked most of the time and "With Direction" checked second most often. Those courses said to be a vehicle in training for the "employment bound“ should not have had either "With On-the-Job Training” or ”Not Covered in Program'' checked for any activity that was deemed necessary for employment. Establishing teacth 3933.3. Those involved with the planning of a terminal technical or general accounting program in a post-high school institution need guidelines to assist them in the establishing of teaching goals or objectives. Instructors and department heads could employ a criterion similar to Figure 1: to assist them in the establishment of these goals for an accounting course or courses in a technical accounting program. The instructors and their department head understanding the local conditions could detenine, by placing '1' marks in appropriate columns for each activity, the goals for each activity and thus, could also determine the teaching effort needed and the student progress required prior to the students accepting a position in the I'world of work.” For example, if it was determined that a future technical accountant should be able to perform an activity “without direction, " the teaching effort would have to be concentrated on the application of knowledge in perfoming that activity. In this case, practical application of the knowledge would have to be the determining factor in teaching and measuring student progress. If on the other hand, those involved were to check that a student should be able to perform an 15? activity after having had additional ”on-the-j ob training" the classroom goal would probably be one of giving general or background intonation. Evaluation and selection _e_f: tertbookg. According to the preface in nest accounting textbooks, the books were written with one of two purposes in mind: (1) to be used as a segment of a four-year program leading to a baccalaureate degree in accounting; or (2) to present a managerial emphasis with little stress on application. Inasmch as few accounting books have been written with the terminal student or technical accounting courses directly in mind, it has been necessary to evaluate and select textbooks for technical accounting program with extras care. l’ae list of evaluative criteria for technical accounting prograns (Figure 3) could be employed as a guide in Judging content desired in textbooks used in such a terminal accounting program for firms manufacturing durable goods in the tri-county area. A textbook evaluator could construct a cooperative worksheet showing the needed accounting functions and activities vertically, similar to Figure 3 or Figure 14, and with a separate column horizontally for each textbook being considered. me could then indicate for each function or activity the adequacy of which each activity was covered in the textbook. A predetermined code could work nest advantageously such as: l - adequate coverage, 2 - adequate coverage if supplementary material were used, 3 - inadequate, and h - not covered. This type textbook analysis would enable an evaluator to objectively select the most appropos textbook and therefore know in advance what additional units of instruction would have to be provided through supplementary material. 158 Guidance £03; 9523; 29.21-23- The list of evaluative criteria for technical accountants «played by firms manufacturing durable goods in the tri-county area (Figure 3) could be used by those guiding or assisting students in the choice of a career. The list shows the type of accounting activity one could expect to perform on taking a job as a technical accountant in a durable goods manufacturing firm. Using these data along with the understanding of an individual's likes and dislikes, goals and ambitions, and abilities and limitations those performing the guidance function could assist students in deciding their future as to their becoming a technical accountant. W reggigements. Oomninating an employer's expectations of a new employee has always been difficult. The plaeuuent bureau or office could have a potential employer check those accounting activities from Figure 3 deemed most significant for successfully filling a vacancy. The activities could be arranged with column headings depicting expected level of achievement such as: (1) employee must be able to perform, (2) must understand: (3) should know, or ()4) nice to know. men this classifying of the technical accounting criterion list was canpleted, placement officials would have an indication of the depth, operational level, and technical accounting proficiency required of a new employee in a given firm. Placement personnel then could better assist in the matching of students or graduates to Jobs in such firms. Similar indications couldalso designate specific needs for “in-service“ and “up-grading" training perfermsble by post-high school institutions. ——_——\€(I.£h.':u=xhl'— 159 a. 222:. may: For more than fifteen years the researcher has been involved as an accountant, accounting supervisor, accounting consultant, and a teacher of accounting and with this experience plus the findings in this study feels the following cements are Justified: Content. The content in a terminal accounting program should not parallel that offered for transfer to or in a 14-year collegiate institution. The terminal ac counting student needs tools which he can inediately put to use in the performance of duties as a technical accountant. Then, through a planned contiming education program he can obtain the additional recomended theory of accounting and the peripheral niceties. Here specifically, a technical accountant needs: (1) more contact and experience with everyday cost accounting problus and activities that deal with the reporting and controlling functions of business; (2) experience in completing governmental reports as well as miscellaneous management reports in reference to budgets, efficiency, and profits; and (3) experience in the basic systems and procedures of accounting so as to more understandably perform the daily funetions and activities. On the other hand, much of that which is now normally taught from collegiate textbooks could be eliminated or altered. It appeared frau this study that many of the concepts difficult for students to cmrehend were little used in industry by technical accountants. hamples of these are the sum-ef-the-digits method of computing depreciation, purchase and sale of stocks and bonds, Life method of 16o inventor-ying, ruling accounts, division of partnership profits, dissolving partnerships, consolidating branch reports, etc. (See Appendix 0 for additional 1m.) Instructional Procedure. The procedure of lecturing for period after period is not appropos for the training of technicians. A technician learns by "doing” and it is the "doing" that keeps him progressing toward a goal. Therefore, the classroom ought to be a simulated accounting office with office procedures. The utilization of cases, practice sets, laboratory periods, demonstrations, problems, and cooperative training, flavored with individualized instruction would do mch to assure a technical program's success. Guidance. The individual normally interested in a temiml type program is not the h-year oriented student, except in rare cases. The vecatiomally oriented individual is interested in learning by doing so as to be able to obtain a respectable position and perform satisfactorily en the Job. Therefore, only those should be encouraged who are interested in performing the type activities classified as technical accounting. These intending to couplets a baccalaureate degree in accounting should not be encouraged to enroll in a terminal accounting program The person entering a terminal accounting program could very wellbesemeonewhegglggeisuccessfullycempete inaregular h-yoar program. Instructors. Inasmuch as the content in a textual accounting prom should not be identical to the typical baccalaureate accounting 161 program, the smdents do not necessarily have the same interests or abilities, nor do they anticipate perforudng the same function when they graduate; and it could be that the technical accounting instructor might well also be different. It has often been said that teachers teach as they were taught. Most accounting teachers are baccalaureate degree oriented and hence may not be able or want to adjust to the teaching of strictly terminal accounting data. Instructors tend to want to prove that their teaching and their students are as good as those in the ''university'“ and teach accordingly. For this reason, an accounting instructor or a recent graduate with a Master's or Doctor's Degree in accounting may not qualify as a first-choice instructor for such a program. Hhat are the alternatives? First, the selecting of exceptional technical accountants with a I'flare" for helping others and then give him the necessary training helpful in presenting information advantageously. This person could very well not be a college graduate. (This would be similar to procedures used by the trades in employing teachers.) Secondly, the instructor could well be one presently employed as a bookkeeping or accounting teacher but who thoroughly understands the activities as performed by accounting technicians in industry. Thirdly, the instructor has to be interested in the development of teaching units and materials as present texts may not wholly stress that which should be covered. 162 m In conclusion, the writer would be remiss if it was not mentioned that any criteria based on present activities and used to evaluate a course, a program, a textbook, etc. must be used with mature judgment. No single list or criterion should ever be employed alone to judge effectiveness or non-effectiveness of a terminal course or program in a post-high school institution. However, along with other evaluative instruments or conditions, an up-to-date evaluative criterion based on current practices as performed in this study can be helpful in maintaining or establishing a technical accounting program for the I'nerld of work. " BIBLIOGRAPHY MKS Anderson, David R. and Schmidt, Lee A. Practical Controllership. Revised edition. Homeweod, Illinois: Richard D. , Inc., 1961. Anthony, Robert N. basement Accountiggr Text §_r_r_d_ Cases. Third edition. Romewoed, Illinois: Richard D. Irwin, Inc. , 1961;. Anthony, Robert N. Management Accountng Princi les. Rosewood Illinois: Richard D. Irwin, Inc., 19 . Awad, Elias 1!. Business Inta' Processin . Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 19%;, Backer, Merton and Jacobson, Lyle R. Cost Accounti_ngr A Hana rial W. New York: HcGraw-Rill Book Company, 1965. Bier-an, Harold, Jr. Financial _ang Medal Accountiggr An Introduction. fiii'iSFE'hnd London: Macmillan Co., 1§33. Blocker, Clyde 3., Plumuer, Robert H., and Richardson, Richard D. Jr. _Th_g_ Two-Tear Colleggr A Social mthesis. mglewood Cliffs: Prentice-Hall, Inc. , 1933. Brock, Horace R. , Palmer, Charles, and Archer, Fred C. Cost Accounting Theogz and Practice. Chicago, Illinois: Gregg Division-HeGraw-Hill Book Company, 1965 . Rreekover, Wilbur B. and Gettlieb, David. A Sociology 2; Education. Second edition. New York: American Book Company, 19 . mnois, Philip R. A_n_ Introduction 1.2 tholo§§cal Statistics. New York: Harper a Row, Publishers, l9 . Finney, A. A. and Miller, Herbert E. Principles 2;: Accounti_1_1gr Intermediate. Fifth edition. Inglewood Cliffs, New Jersey: Prentice.m1, Inco, l962e Gillespie, Cecil. Accounting m: Procedures a_nd Methods. Second egition. Englowood Cliffs, New Jersey: Prentice-Hall, Inc., 19 l. 163 16h Gleaner, Ednund J. Jr. and Carroll, Alice )4. (ed.) American Junior Colleges. Washington D. 0.: American Council on Education, 19 3. Good, Carter V. Introduction pp Educational Research. Second edition. New Iork: Appleton-Century-Crofts, Division of Meredith Publishing Company, 1963. Gordon, Myron J. and Shfllinglnw, Gordon. Accounti_ng: A_ Management Approachgh Third edition. Rosewood, ois: Richard D. , Inc. , l9 . Holmes, Arthur w., Maynard, Gilbert P., Edwards, Janos um, and Meier, Robert A. nenent_ag Accounti_pg.‘ Third edition. Honewood, Illinois: Richard D. Irwin, Inc., 1962. Johnson, Robert N. Financial Hanaggent. Second edition. Boston: Allyn and Bacon, Inc., 19 Kohler, Eric L. A mctim__ fm' Accountants. Third edition. mglewood Cliffs, New Jersey: Prentice-Hall, Inc., 1963. Hats, Adolph, Curry, Othel J. , and Frank, George H. Cost Accoun Third edition. Cincinnati: South-Western Publishing Co. , 1962 . Nedsker, Leland L. m Junior College: Prol 9ess and Pro omct. New York : HcGraw-Hill Book Company Roigs, Walter B. and Johnson, Charles E. Accountipg. New York: HcGraw-Rill Book Cenpaxv, 1962. Myer, John N. Financial Statement My Principles 9.1.9. Technige. Third edition. New York: Prentice-Hall, Inc. , 1961. Nelson, Renry (ed.) The Public Juni____o_r_ College,__ The Fiftz- ~fifth Iear b_o_o_k of the National SocietT__ for the Stu °_.f Education. Chicago: _finiversity of Chicago Press , 6. Neuner, John J. U. Cost Account : Principles__ and Practice. Sixth edition. Rosewood, Illinois: Richard D. Irwin,Inc ., 1962. Ninwonger, C. Rollin and Fees, Philip E. Accounting Princiges. Ninth edition. Cincinnati: South-Western Publishing Co. , 1965 Nosow, Sigmnd and Pom, Nillian R. (eds. ) Ian Uo___,rk and Society: A Reader _i_n_ the Sociolo _e_f Occupation. New York: Basic Books, Inc., 1963. Park, Colin and Gladson, J ehn t". 1.25.128. Capital : Flow-of-Funds fiforha DRIFT. m 2.33. ntrol. New fork: NeoniJJan- Ce. , 1 3. 165 Pyle, William W. and White, John Arc. Fundamental Accountfl Princi les. Third edition. Rosewood, Illinois: Rlchard D. Irwin, Inc., 1965 Wm Gordon. Ce__s_t Accoun ount_i_ng: 2.22 Control. Romewood, Illinois: Richard D. Irwin, ., 19 l. Siegel, Sidney. Wig; §______tatistics for the Behavioral §_c____ienoes. New York: Mathew-Hill Book company, 1933? """""""' Terrill, Ellism A. and Patrick, Albert A. Cost Accounthg___ For ' lhnagenont. New York: Holt, Rinohart, and Winston, Inc., 1965. Thornton, Janos W., Jr. The Co—nit%___ JuniorCo llege. New York: John Eloy and Sons,Ino ., l9 Venn, Grant. Han Education an__d _Wo__rk: Postsecopggg Vocational 93 Technical Education. Washington, . C. : American Council on Education, 19 . Ward, Phebe. Terminal Education in the Junior Collegp. New York: Harper 8: Eothers fiblishors, 191:7. Winn, Rufus (ed. ) Accountants Handbook. New York: The Ronald Press W, 1960. . l26_6 Federal To; Course. New York: Cuerce Clearing Rouse, Inc. , 1963. NATIONS OF THE 00m AND 0mm WHONS U. 8. Department of Labor. Diction_an__ of Occumtional Titles: Definitions oi Titles. Third edition, Volume 1, 1933 Washingtm: Government Printing Office, 1965 U. S. bpartment of Labor. {Luigi Breadwinners: Their cial N__e___eds. Manpower Ros-_oarl—ch “Bulls—tum. Office of Manpower, Automation and Training, January, 1961: 0.8 .Department of Labor. Job Gui___pl_e_ for m Workers: lzééfl ’_. W. Washington 23, D. C.: U. 3. Government Printing Office. II. S. hpartnent of Labor. Occu tiomal Outlook Moo-__g. Mlletin No. 1375, hresn of Labor Etatistics. Washington, D. C. , 1961:. U. S. kpartnent of Labor. 'Vecational ldncation and Nanpower Needs'. Confitiml Outlook m. Mean of Labor Statistics, Dec . 166 ARTICLES AND PERIODICALS Honorable John R. Dent. “New U. 8. Civil Service Standards for Accounting Technicians,“ _Thp. Balance Sheet, my, 1965. Lynn, Edward 3. "Education and Professional Training,” J_peur___na1 of Accountancy, Volune 117, June, 1961:. Head, Margaret. "Thinking Ahead: Why is Education Obsolete" Harvard Business Review, 36, November-December, 1958. Peterson, B. R. ”The Role of the Junior College in California,“ California Education, Velma I, Number 2, October, 1963. Porter, Sylvia. "A National Scandal-Vocational Schools Fail to Focus on Jobless Solution,“ Chicago Daily News, April 10, 1963. ‘Eanamuskas, Helene ILA. "The Omen Body of Knowledge for Accountants , The Illinois CPA Winter, 1961:. Saveio, Leonard N. “The Input Needs of the Accounting Profession,n Ln; mum: on, Winter, 1965. Slates, Philip E. and Bonnie, Warren G. "Domecracy Is Inevitable,“ Harvar______d_ Business Reviow lurch-April, 1961;, (Journal of Aecountancy, Volume E7, lhy, 1961:). REPORTS Combs, Phillip R. The Technical Frontiers of Ethication. The Twonty-Sovonth Annual Sir John Adams Locturo , University of California, Los Angolos, 1960. Detroit Public Schools, w Pupils____ for the Wor___]_._d of Work. A Report and Recmendatiens Prepared by a Special -3taff Cmittoe Appointed by the Superintendent of Schools . Ibtroit: The Board of Education of the City of Detroit, 1962. Nartorana, S. W. The Comnitz Cellogg in Mic an. Staff Study No. 1. lensing: Michigan legislamre tudy Committee on Higher Education, 1957. htional Association of Iknufacturors. _Th_i_s We Beli____o__vo Abeu_____t_ Education. A Statement Concerning Education in Anorica by the Educational Advisory Col-ittee of the National Association of Hamfacturere, New York, 1958. >——-__. 167 fighthand, Norbert. Connecticut's Need for Technicians 1932-1212. A Report Ismod by the fivieien of Vocational Education. Hartford, Connecticut: Connecticut State Deparhsent of Education, 1961:. Vorway, Ihvid I. (ed.) m Statistical Abstract. Bureau of Business and Eccnnic Research, Graduate 5 heel of Business Adminintratim, Michigan State University, 1961;. Weerdeheff, Frank J., Nelson, Norbert J., and Cester, John I. Vocational Education _i_n_ Public Schools a__s_ Related to Sec___i_al_, Economic, and— Technical Tro__g__ds: _Part I, The Anal is _e_f Tronds_ _o_._n__d Concepts. Lafayette, Indiana: TE; Division of Education, Purdue University, 1960. UNPUBLISHED HATEIAL Bennett, Leonard hgeue. “A My of the Educational and Personl Characteristics Required for Initial hpleynont of Accountants in 9. Selected Group of Iowa Industries.fl Unpublished Naster's thesis, Iowa State Teachers College, Cedar Falls, 1958. Blelinski, it. Victor. “Practices of Michigan Cunnity Colleges in Providing Progress for Achlts.‘ Unpublished Ph.D. dissertation, Nichiun State University, East Lansing, 1963. Casobier, Virginia Eleonor. 'A Time Study of Activities and Responsibilities of Secretaries with Implications for the Training of Prospective Secretaries." Unpublished Ph.D. dissertation, Northwestern University, Evsnsten, 1957. Cleyd, Rolon wth. 'An Analysis of Current Practices in Cost Accounting in School Districts." Umblished Ph.D. dissertation, Hichigan State University, East Lansing, 1963 . Bovine, John W. 'A Cuprehensive Analysis , Classification, and Minions ef Research Findings and Thought on the Teaching of Bookkeeping and Accounting 1950-61.” Unpublist Ph.D. dissertation, Indiana University, newton, 1962. Vol. I and II. Durham, Enford. I"The Relationship Between Bookkeeping Instruction in the Classroom and the Dities Performed by the Bookkeeper.” Unpublished meter's thesis, George Peabody College for Teachers, Nashville, 1960. Edwards, Kelvin Lloyd. "The Effect of Autaoaticn on Accounting Jobs.‘. Unpublished Ph.D. dissertation, Graduate College, University of Oklahua, Norman, 1959. 168 Mt, Wilna Alice. “An Analysis of Accounting Syetens and Practices with Implications for Improvement of Instruction in Accounting.“ Unpublished Ph.D. dissertation, Graduate College, University of Oklahoma, Norman, 1959. Farley, Gilbert Joseph. "The Role of the Community College in the Preparation of the Saliprcfessional Office Worker. " Unpublished Ph.D. dissertation, Indiana University, Bloc-ington, 1961. Gardner, Harrison. ”Determning Cmupetencies for Initial nlploynent in the Dairy Farm Equipnent Basineos.‘I Unpublished Ph.D. dissertation, Hichigan State University, hst Lansing, 1964;. Hill, Martha Frances. "A Comparative Study of Bookkeeping Principles and Activities Used on the Job as Presented in Textbooks and by Teachers.ll Unpublished Edd). dissertation, University of Kentucky, Lexington, 1951:. Irene, Joseph P. Jr. "The Bookkeeping Activities of Snell Business in Greeley, Colorado, and Implications for Teaching in High Schools.“ Unpublished Master's thesis, Colorado State College of Education, Greeley, 1953. Kinball, John Robert. “Analysis of Institutional Objectives in Michigan Commnity Collleges.II Unpublished ld.D. dissertation, Michigan State University, East Lansing, 1960. Larson, Hilton E. ”A Study of the Characteristics of Students, Teachers, and the Curriculum of Industrial-Technical Education in the Public Community Junior Colleges of Michigan." Unpublished Ph.D. dissertation, Michigan State University, but Lansing, 1965. Lees, George Winchester. "An Analysis of Accounting Skills and Knowledges Used by Selected Experienced Electrical higineers in Rhode Island." Unpublished PhJ). disseration, University of Connecticut, Storrs, 1957. Moran, Sister W. Saint Agnes. 'Deterninaticn of Bookkeeping Instructional Materials, hperiences, and Kinds of Bquipnent as Shewn by an Analysis of Bookkeeping Job Activities.“ Unpublist Edd). dissertation, New York University, New York, 1955. Nieni, Leo. "Electronic Data Processing and Its Implications for the Collegiate Business Curriculum. " Unpublished Ph.D. dissertation, The Ohio State University, Columbus, 1959. 169 Parsons, Warren. 'An Analysis of Training Needs and Deployment Characteristics of the Greenhouse Grower in Three Metropolitan Areas.'I Unpublished Edd). dissertation, Michigan State University, East Lansing, 1966. Poland, Robert P. 'Iuplications of Certain Social, Economic, and Technical Trends on Business Curricula in the Public Colmnity Colleges of Michigan. " Unpublished Ph.D. dissertation, Michigan State University, East Lansing, 1962. aleman, 'lhuglas Roland. l"The Merging Role of Vocational Terminal Education in the Public Cmnity Colleges of Michigan. " Unpublished Ph.D. dissertation, Wayne State University, Detroit, 1956. Stoner, Jams Kermit. “An Analysis of the Accounting Systems and Practices of M11, Independent Retail Businesses.‘I Umblished Ph.D. dissertation, Graduate School, University of Pittsburgh, Pittsburgh, 1953. Snorer, Kenneth. “A Study of Social Status and Selected Factors Represented by Entering Freshnen and Students Completing Two Years of College Work at Flint Commnity Junior College." Unpublished Edd). dissertation, Hichigan State University, East Lansing, 1965. Snatt, Basil 0. "Concept Changes Related to the Hechanization of Accounting Procedures.“ Unpublished Edd). dissertation, Indiana University, Bloomington, 1962 . Tenpleton, Logan, Jr. “Analysis of the mties, Educational and Personal Requirenents of Junior Accountants in Austin and ' Houston, Texas. " Unpublished Haster' a thesis, Graduate School, The University of Texas , Austin, 1955 . Williams, Ferns. 'A Study of the Effectiveness of the Office Training Program at Flint Ccmmnity Junior College as Related to the hploynent Needs of Former Students. " Unpublished Ph.D. dissertation, Michigan State University, East Lansing, 1960. W038 170 171 APPENDIX A Michigan State University Research and Develoment Program In Vocational - Technical Education 320 Erickson - 355-1769 Tri-County Technical Accounting airvey The purpose of this questionnaire is to obtain information which provides insight into the current and projected need for technical accountants in the tri—county area. Your responses will help guide us in our effort to meet the changing needs for accountants in our area from the student's and employer's standpoint. SETION I CONFIDENTIAL Company Kane Telephone Street Address City Name of Person Reporting Title that are the udor products that you mamfacture? How many (total) full-time employees do you have in the tri-county area? How does this total employ-ant compare with 1960? (check one) An increase Is the same A decrease Information not available In order to discuss specific accounting competencies with one of your accounting personnel, whc- should we contact for clearance? Name Position sessaaaaseosscoarsenessaseoossaeeesooaesee SETION II The balance of this questionnaire pertains to the employ-ant policies and functions for accounting personnel. If you are not familiar with this area, you nay want to pass the mentionnaire to the controller or accounting supervisor for caspletion. If this questionnaire is compiled by smeone other than listed above, please indicate nane and position. Km Position Please supply, in the table below, the information as it relates to your firn for the category of full-tine accountants and bookkemrs. Anticipated Ammal Anticipated Number Average Raploynent Dunbar of of 1965-1970 Increase or Positions (Check (me for Each) Increase In- E Camot In Positions Type of Job 1960 1965 crease Sane crease Deter-ins To 1970 Accountant Bookkeeper Assume for a moment that in the near future you have to employ saueone for each of your present bookkeeping and accounting positions. APPENDIX A (continued) views you find many who can perform the following accounting activities: Record information in journals and ledgers Keep records of accounts receivable and payable Stmarize accounting information Classify accounting information for easy retrieval Caupnxte payroll, bad debts, depreciation, cost, etc. Allocate departmental costs Analyze accounts such as - accounts receivable, inventories, equipment, payables, costs, expenses, etc. Make out the financial statements - balance sheet, incme statenent, cash flow, schedules, etc. 172 In your recruiting inter- How sany bookkeeping and accounting positions are there within your firn for which persons with these qualifications could qualify? *****************i*********§§*{*i'I-‘I‘I-l‘I-‘I-‘I'i‘l’ SMION III In this section we are interested in those bookkeepers and accountants for which you consider desirable or essential for initial employment an accounting education beyond high school, but less than a h-year college degree. or business college) (In these two years, accounting students usually take one year of Accounting Principles, and at least one ten each of Cost Accounting, Intemediate Accounting, Accounting Procedures and System, and at times Tax Accounting) (i.e . omnity college Please supply the intonation in the table below as it relates to your firn for the above category of accountants and m. Anticipated Annual Average Anticipated Mer Past Supply of Average hplcynent “or of of Qialified Applicants 1966-1970 Increase or Anticipated Positions (Check One For Each) (Check One For Each) Decrease m Ade- 11;. WW In Positions hrnoverl' Type of Job 1960 1965 quate Scarce Surpluchrease Sane crease Determinew 1° 197° 1° 197° Accountant [ l Bookkeeper I [ I'l'urnover nay be due to practice, retirqaent, marriage, leaving the firm, etc. Would you uploy a casualty college graduate who had a special accounting program geared toward the manufacturers of dmrable goods in preference to a graduate of a general taro-year accounting program? ' Yes No Unsure 173 APPENDIX A (continued) If you employed a graduate of the accounting program: at the con-unity college and he progressed satisfactorily would he be eligible for praction? Ice No Unsure If your answer to the above question is yes, to what level would it be possible for a eel-unity college accounting graduate to progress within your firm? (check one) 1st Line Supervisory 2nd Line Supervisory (such as Department Head) Management Executive Officer Cannot Predict {'i‘I-‘l'l'l-I'I'I'i'I-i-l-‘I'fi‘lii*********§***§********* SETION IV Data processing does and apparently will continue to affect the accountant and his work. Please check in the following table the nethod of processing data used by your firm and the accounting activities processed by this systen. _L at If Not Used Indicate Now , But Accounting Activities Pea-toned Proceduresu Anticipate by Used Using by lite Proces 9“" 1970 Inventory Wmt§st Procedure Yes No (Check) Payroll Control Control Control Reports Other lhnual 30W Machines Punch Card Culputsr Use a Cc-ercial Ihta Processing Service APPEND ‘1 B 17h MICHIGAN STATE UNIVERSITY EAST LANSING- MICHIGAN 48823 COLLEGE OF EDUCATION 0 DEPARTMENT OF SECONDARY EDUCATION AND CURRICULUM RESEARCH AND DEVELOPMENT PROGRAM IN VOCATIONAL-TECHNICAL EDUCATION . ERICKSON HALL How do you do? I am Lawrence Ozzello, presently employed by Michigan State University in the Research and Development Project for Vocational Education. We are conducting a survey in cooperation with the Lansing Communlty College and Lansing Business University to determine what accounting programs ought to be offered and what should be taught in the courses. Will you help us? We are surveying the current and projected needs for technical accountants in the Tri-County (Clinton, Eaton, and lngham) area for firms manufacturing durable goods. The study should have the following outcomes or results that could benefit students, schools, and industry: I. The local need for accountants will be known, so practical advising can be made for potential accountants. 2. Due to a specific determined need, potential accountants will receive practical advice about the job market; and local colleges will be able to adjust their training programs for accountants accordingly. 3. Speclflc training of accountants for durable goods manufacturers will be possible. h. It will help fulfill part of my requirements for a doctor's degree. Before you put this questionnaire down; will you, or will you have someone else, complete it and then insert it in the self-addressed envelope? We need your help. We realize the enclosed short survey instrument will take a few minutes, but through lts results we hope to save you time and effort in the future. It should help us adjust the training and educational pro- cedures to the local situation. Lawrence Ozzello Project Director 175 APPENDIX 0 mm GOODS mam FIRMS CONSIDER IN THIS STUDY LISTED WALL! BY CITY Code 0151 Mar Firm Address Bath 001 Allied Dispoul Company, 5293 0110s Reed Bellevee 002 A I: 1 Hood Products, 9900 Jones Road 003 *Ancrican Door 0c.‘Inc., 222 3. mm 001; *Cheney Idaestone Ge. , 8038 Peace Road 005 *nconcwny Mastering 0c., 722 H. lain Charlotte 006 *Aluim Extrusions , Inc. , 5030 Lo'rett 007 *into-atic Screw Prodncts, 205 s. Idnccn 008 Baird, Ralph H., Lancing Road 009 “Pooch Manufacturing 00., 202 scrrm 010 *charlcttc Chair c.., 202 Pearl 011 *Gharlette Electric Haters, 121: H. mm 012 Century ochinct oc., 202 Lansing 013 *charIottc wood Products, In N. than out *nury Machine a Tool cc., 316 Hut Pint 015 ”ml. Frank Oabtc, m H. $.11 016 *ocncrcl um Products, Inc. 1023 Reynolds Road 017 *Jchnccn Iron Industry, 71.2 wont Sheperd 018 *Jchnccn Imbcr Mtg. 0c., 863 N. ccchran 019 *xcrckcc Machine 0 Model, 699 Lansing Pond 020 Northern Concrete Pipe 5281 am Lansing had 021 In-Usy Industries, 60 U. Seminary 022 ‘Ihnzi. Aluminum kin-visions, 530 ii. Lovett 023 Ovens-mimis Glass containers, 500 Packard We 02!. Soheib Industries, 231:2 Chester Rd. 30:: 210: 025 ”Sterling Type Foundry, 118 W. Henry 026 Ed. K. Smith Industry, 215 s. Pcctuich 027 *Tnckey's Machine 310p, 219 Lansing 028 *wcrId Magnetics, Inc. Dfitt 029 Km, Herbert R. (0118), 15115 Dill Read W 030 arable 8: Sons lists]. Products, 116 Bridge Eaton Rapids 031 *Brotlnvell Tool 8: his, 71th}; Bellvne my. 032 *satcn Rapids Stamping mvicion, Allied Products Corp., 501 Marilyn 033 *hton Eta-ping 00., I. Haven P. 0. Box ho 03h *Goodnoe's Tool Products, h90‘3 ibittn Rd. 1% last Laming CrandLedge Holt Ian-inc Coda Dunbar 035 036 037 038 039 Oho ohl 01.2 Ohh 016 01.6 01:? 01:8 01:9 051 052 053 055 056 057 058 OS 9 060 061 062 063 065 067 069 070 072 176 APPENDIX 0 (continued) Rim Address Holmes Rubber Stamp Service, 201; E. South *lliuer Pnrancc Mtg. 06., Plains Road, Box 177 Union Bag .. Camp Paper Corp., 233 ll. Main Hale's Forge, Inc., 732 Lake Lansing Dd. Superior Brass 8: Alumimn Casting Company, 1:893 Dawn Avenue *Crand Ledge Chair company, 101 Perry *I a 0 Hold Corp., 220 N. Bridge Jenkins Die Sinking 00., 130 Orchard *chgc'c Industries, 520 a. Clinton Parson's Chemical works, Grand Ledge Hwy. *Arnold Concrete Products, Hogsbaok Road *CcntraI Die Sinking 00., 2200 Depot Max Goodrich Mfg. & Wise, 2182 ll. Cedar *HoIt Products Company, 1875 woJmt Street *Ledo Iron Works, 2055 N. Cedar Metro Hotel Mtg. 00., 17140 Hall *Panncr Engineering, Inc., 1.171 East Delhi Spartan Asphalt Paving 00., 8. Cedar Spartan Plastics Inc., 1857 3. Cedar Spartan Sign, Inc., 8. Cedar Stanley Mfg. 00., 2202 N. Cedar Scripco Mfg. 00., 9805 E. Round Lake Rd. Tisch-Craft Mfg. 00., Tisch Bldg. *Abrams Instrument Corporation, 606 East Shiauassee *Adans T001 & higineering, Inc. 1313 South Waverly Road *nr-mt Cmupany, 2330 West Main Street *micd 14511 sqnipncnt 00., 2812- North Logan *niic ChaJners mg, w. 0.3. 16, Box 5157 Aniss Block Plant, 201 North Detroit Street Ivan ii. Anderson, 2305 North High Street ' *Atlas Drop Forge Division and Corporation, 209 U. Ht. Hope Avenue *Anto-Air mdnctrica, Inc., 1231. South Holmes rg Abrasives, 1010 East J 0115' Road ”Bradford Machine Tool Company 722 Porter Street *C.E. 8: H. Die 6: Tool Corp. ,0 £315 Wt *Capital Casting 00., 1711: Sunset *CapitoI Plating Company, 1801 Bassett *Capitol Tool Grinding, LG? N. Rosemary LE 17? APPENDIX 0 (continued) Firm Address *CcntraI Plating 00., 327 Spring Carrier Stephens Coupon, 221 Depot Street Chenstyle, Inc., 5801 W. Ht. Hope Avenue *Centrifugal Fusing Company, Subsidiary of Calpbell, Want a Canon Foundry 00., 727 Wey Street *D. at 8. Die Coupam, 830 River Steel Products 00., 750 hat min Street r Tool 8: Die 00., 3525 Capitol City Blvd. Detroit Ball Bearing Caspany of Michigan, 138 North Cedar Street ‘ Jae Steel Fabricating Corp. , 1312 South Waverly Road *anco Industries, Inc., 701. Past Oakland St. *Pederai Drop Forge 00., 2200 South Washington in. U. R. Grace 8: Company, mvison Chemical Division, 21.01 North High Street ‘Pishcr Body Division, General Hetero 0erp., h01 Verlinden Aveme ’ *Poote Industries, 1010 s. Pennington, P. 0. Box 9172 h-iden's Agency, h6l6 Ii. Grand River Gates Rubber Ce. , 31h Townsend Street *oiche Products Corp., 1818 Baseett heme Ora! Tools Compact, 610 Allen Street Baum Steel Company, Capitol Steet Division, 11:08 Puller Street *IdeaI Finishing Corp., 18.25 Tranter *Indnstrial ELacksnithing Co. Inc., 31115 Aurelia: Road “Industrial lbtal Products Corp. , 3M7 West St. Joseph Street *Industriai Pattern, 326‘ South nos-er Street ‘Indnstriai Welding, Inc., 22u01ds Avenue *Jet Die a angineering, Inc., 1109 River St. *John Dean Division, FHC Corporation, 1305 South Cedar Street John Henry 00., 735 East Inchigen Avenue K at 0 Metal Finishing 00., 1215 River St. Kenn Machine Tool & me Works, 807 iii. Stimson *Kish Industries, Inc. , 1301 Inner Street Luke maturing 00., hll I. melee» *Lans Corp., 701. Sheridan *Lansing Automatic Screw 00., 11:12 I. Larch “Taming Company, Division of A.J. Industries, 521 North Cedar Street an: Code Mar 107 108 109 110 111 112 113 111. 115 116 117 118 119 120 121 122 123 178 APPENDIX 0 (continued) Finn Address *Iansing Die Sinking 00., 618 East Oakland in. *Lansing Drop Forge Co., 2807 South Logan St. *Lensing hotel Plating Co., 717 Walker St. *Lansing Pattern a Mfg. Co., 700 E. Oakland St. ing Stamping Company, Metal Flo Subsidiary, 1159 South Pennsylvania Avenue sing Tool 8: Die 00. 700 Porter Street ing Welding Co., 01 East Howe Avenue Steel 8: Iron 00., 927 Harris St. *Idndell Drop Forge Co., 2830 South Logan St. *Lundberg Screw Products Co., 2101 Westlfllloe *HcConnell fileet Metal, Inc. , 9113 Center St. *Hachine Tool Electric Corp. , 3300 lensing Dd. *nemng Forging Coupahy, Avis Industrial Corp. 1709 Thomson Street, P. 0. Box 516 *hetul Inchinihg Co., 21h North Larch St. fluchigan Die a Tool Co., 700 a. Kala-aloe *Hississippi Valley Structural Steel Co., 901 River Street “Motor meal Corp. , 1600 North Larch Street *hilti-Lead T001 & Ehgimering Ce. , 2538 West Main Street *ucve Pump 0 hgino Division, American Harsh Pumps, 702 Porter Street *Du-Way Industries, Inc., 1301 North Turner St. (Ddsmobile Division, General Motors Corp. , 1011; Townsend "UIofsson Corp., 2727 Lyons Avenue Phillips Brothers Screw Products Co. , 2909 South Logan Street *thips Harmfacturing Co., 31.35 West Holmes ad. Pitney Boees, 2518 8. Cedar t Corporation, 1820 finest Avenue Plastics Harmfaclmring Inc. , 1116 E. South St. Plumer Machinery 00., 1:19 8. Cedar Street *Preoision Boning Tool Co., 700 E. Oakland St. ”mation WMt Systell, me, 102 North Pennsylvania Avenu “antral Mtge & Pom GOe 1110., 327 South Hill Street Renaud Plastics, Inc. , 5656 8. Cedar Street Hamlfacturing Co., 700 East South St. *Sellhart Manufacturing Co., 11.11 East Kalamazoo *Servicenaster of Lansing, 1601: Wood Street *Sincn Iron a Steel Corp., 1900 West Willow St. *ary-walk Corp., 1.09 West Gier Street *Titus the Tinner, 51.1 East Saginaw Street 115 Leslie St. Johns Stockbridge Westphalia Code Number 1115 11:6 1117 11:8 11i9 150 151 152 153 15h 155 169 170 171 172 173 171. 175 176 177 178 179 APPENDIX 0 (continued) Pin Address Trans Cupany, 506 ll. Washington *Tranter HanuIacturing Inc., 735 s. Easel St. “Universal Gear Division ct Anerican lurch Co., 702 Porter Street *Universal Steel Colparv of Michigan, 1800 West Willow Street, P.0. Box 211 WSW Machine 8: Tool Co., 1:06 Olds Aveme' r 8: Stacey Coupany, Duplex Division, 830 East Hazel Street ‘ te Motor Compaq, Lansing Division, 1331 South Washington Avenue Elem Machine 810p, 121; B. Hadison 1'Wohlert Cerporation, 708 E. Grand fiver Ave . Wolverine Company, 310 3. Charles Street George Worthington Co., 1611 N. Grand River Wright and Fillips, 303 E. Grand fiver *Jackson Autuatic Products Co., Aereqeip Corp-Industrial Div., 611: hill *Dutler Industries, 815 Rice *Eaton Model 8: Pattern, Inc., H-h3 Garthal Chemical 00., 11015 Dobie Road Clark Dig. Co., Route 1 *Air-Way Hamfaoturing Co. , 586 N. lain *n u a Tool nngraving, Inc., 7901. McDonald ad. *Dclplun Company, 205 N. Main *sacward Couplings, Inc., 7898 0.3. 27 *Hacterhilt Products Corp., 719 n. Kain- *011vet hchine Tool Engraving 00., 1:25 N. lain *0]th PNdncu OOe, mVe Pours“ Mtge Corp. 5886 Marshall Road *idvancc Castings Co., 508 Head hrton miter & Mfg. Co., 508 11. Head *Federal Hogul Division, 310 I. Steel Richard 0. Johnson, 1520 3. Francis Rd. Randolphs heady-m: Concrete, 11. 0.3. 27 *St. Johns Tool 0 Die, Inc., 108 E. Railroad *Seylor-Desll Hfg. 0e., 1.00 I. Iihbie *Sealed Power Corp., 916 W. State *Stockhridge Mfg. 00., East Iain Westphalia Killing 00., Box 156 “Time employed as sample to determine current and projected need I for technical accountants. 180 APPENDIX D MATERIALS ANALYZED TO OBTAIN INITIAL LIST OF ACCOUNTING-TYPE ACTIVITIE OFTEN TAUGHT HIRING FIRST TWO YEARS IN A POST-HIGH SCHOOL ENCATIONAL INSTITUTION BOOKS Anthony, Robert N. Management Accounting: Text and Cases. 3d ed. Homewood, Illinois: Richard D. Irwin, Inc., 1961;. Anthony, Robert N. Management Accounti_ng Princigles : Homewood, Illinois: Richard D. Irwin, Inc., 1 . Bierman, Harold, Jr. Financial and Managerial Accounting: An Introduction. New York and London: Macmillan Co. , 1963. Brock, Horace R., Palmer, Charles E., and Archer, Fred 0. Cost Accountigg Theogz and Practice. Chicago, Illinois: Gregg Division-McCraw Hill Book Company, 1965. Finney, Harry A. and Miller, Herbert E. Principles of Accounting: Introductogy. 6th ed. Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1963. Finney, Harry A. and Miller, Herbert E. Principles of Accounting: Intermediate. 5th ed. mglewood Cliffs, New Jersey: Prentice-Hall, Inc., 1962. Gillespie, Cecil. Accountg _S-zgtems: Procedures and Methods. 2nd ed. Inglewood Cliffs, New Jersey: Prentice-Hall, Inc., 1961. Gordon, Myron J. and Shillinglaw, Gordon. Accounting: A Management Amoach. 3d ed. Homewood, Illinois: Richard D. Irwin, Inc. , 1961;. Holmes, Arthur W., Maynard, Gilbert P., Edward, James Don, and Meier, Robert A. Moments Accountin . 3d ed. Homewood, Illinois: Richard D. Irwin, Inc., 19 . Horngren, Charles T. Cost Accounti_._ngx A Managgrial Ephesis. Mglewood Cliffs, New Jersey: Prentice-Hall, Inc. , 1962. Johnson, Robert W. Financial Managgment. 2d ed. Boston: Allyn and Bacon, Inc., 19 2. 181 APPENDIX D (continued) Kohler, Eric L. metionalfor Accountants. 3d ed. Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1963. Hats, Adolph, Curry, Othel J ., and Frank, George N. Cost Accoun . 3d ed. Cincinnati: South-Western Publishing Co., 1 . Heigs, Walter B. and Johnson, Charles E. Accoungg. New York, New York: HcGraw-Hill Book Company, 1 2. Iver, John N. Financial Statement AnalEis: Principles and Technige. Rainer, John J. H. Cost Accounti : Princi Ice and Practice. 6th ed. Hanewood, Illinois: Richard D. Irwin, Inc., 1932. Niswonger, C. Rollin and Fess, Philip E. Accounting Principles. 9th ed. Cincinnati, Ohio: South-Western Publishing Company, 1965 . Pyle, mliam U. and finite, John Arch. Fundamental Account Principles. 3d ed. Homewood, Illinois: Richard D. Irwin, 0’ 19 s Stillinglaw, Gordon. Cost Acoonntig: Analysis and Control. Halewood, Illinois: Richard D. Irwin, Inc., 19 l. Terrill, W A. and Patrick, Albert A. Cost Accounting fog; lbnegeumt. New York: Holt, Rinehart, and Winston, Inc., 1965. linen, Rufus (ed.) Accountants Handbook. New York: The Ronald Press Company, 19 . A UNPUBLISEDIATKRIAL East, Hills Alice. 'An Analysis of Accounting Systems and Practices with Implications for Improvement of Instruction in Accounting.“ Unpublished Ph.D. dissertation, Graduate College, University of Oklahom, Noman, 1959. Hill, Hertha Frances. "A Casparative sum of Bookkeeping Principles and Activities Used on the Job as Presented in Textbooks and by Teachers.a Unpublished Edd). dissertation, University of Kentucky, 1951; . 182 APPENDIX D (continued) Lees, George Uinchester. "An Analysis of Accounting Skills and Knowledges Used by Selected Experienced Electrical Engineers in Rhode Island.“ Unpublished Ph.D. dissertation, University of Connecticut, Storrs, 1957. Moran, Sister M. Saint Agnes. "Determination of Bookkeeping Instructional Materials, Experiences, and Kinds of Equipment as Shown by an Analysis of Bookkeeping Job Activities.‘ Unpublished no.1). dissertation, New York University, 1955. Stoner, James Kermit. "An Analysis of the Accounting Systus and Practices of Small, Independent Retail Businesses.” Unpublished Ph.D. dissertation, Graduate School, University of Pittsburgh, Pittsburgh, Pennsylvania, 1953. 183 APPENDIX E Accounting Activity mestiennaire JURY PANEL Certified Public Accountants - Mr. Janos Finney, Former hocutive Secretary Michigan Association of Certified Public Accountants, lensing, Michigan Mr. David Price, Price-Neterhouse and Cupany, Battle Creek, Michigan lh'. John Wood, Arthur Anderson and Colpany, Chicago, Illinois Accounting Supervisors -- Mr. Albert E. Brandli, Controller, Fisher Body Division, General Motors Corporation, Lansing, Michigan Mr. Janos G. Corkrey, Controller, John Bean Division, Ford Motor Car Cups”, Lansing, Michigan Mr. Robert Imeger, Accounting Manager, Malling Forging Division, Avis Industrial Corporation, lensing, Michigan Accounting Professors - Dr. Ronald Copeland, Penn State University University Park , Pennsylvania Dr. Charles Lawrence, Michigan State University, last lensing, Michigan 11'. Howard Lynne, Moorhead State College Meorhead, Minnesota :18b APPENDIX F Michigan State University Research and Development Program In Vocational - Technical Education 320 Erickson - 355-1769 CONFIDENTIAL Tri-County Technical Accounting Survey The purpose of this questionnaire is to obtain information which provides insight into the current and projected need for technical accountants in the tri-county area. Your responses will help guide us in our effort to meet the changing needs for accountants in our area from the accountant's standpoint. SECTION I Company Name Telephone Street Address City Name of Person Interviewed Title Does your firm have a job description of your position? How many years have you worked for this firm? How many years of bookkeeping and accounting experience do you have? Did you graduate from.high school? What year? Did you attend college? How many years? Where? : ca a co umn or umns below any of the following special courses you may have had in high school, t coll classes etc. Others Special Courses Classes Adult Evening r4 8 .C: O U) I: no or! :11 APPENDIX P'(Continued) 185 SECTION A Are You Directly Involved With The Constructing, Performing, and/or Analyzing These Function, Activities, and/or Accounts? FUNCTIONS, ACTIVITIES, AND ACCOUNTS FINANCIAL REPORTS AND SCHEDULES ance c me tatemen f t tal Statement Retain 5 Statement us urce A cation of 5 Statement Stat t ets: Cash F. . .A. ed 0 tate t tate Sales Tax se ax ax ensation ensation ccoun Receive e Accounts le st 0 ods So enses strative ense o actur t 3 ed on Statement terns ve st rts ci 8 Credit Ra rts . on page eneral Dunn & Bradstreet etc DIRECTIONS: ‘—Section A Indicate by a check mark (v) in either the "Yes" or "No" column whether or not you are involved in the performing, constructing, or working with the accounts, functions, and activities listed. Section B If your answer to Section A was "Yes", indicate by a check mark (v? the average fregpency \time) which you usuallygperform this activity.J SECTION B Average Frequency Which These Special Activities Are Yes No APPENDIX F (continued) SECTION A FUNCTIONS, ACTIVITIES, AND ACCOUNTS EDULES continued tal Statements anch and Division Stat ts solidated Statements: ce heet come tatement A S S Rat os: ent Ba 0 Aci est Rat o ui ssets ei les to es t o t to ssets Ratio es to Asset Rat o t Assets to - erm a es en es: st to Sales Return on vestment 6886 01‘ rease Statement 0 Account Rec Rec Semi-Annually 186 and flyfilwflfil I 1 APPENDIX F (continued) SECTION A FUNCTIONS, ACTIVITIES, AND ACCOUNTS Balance 0 ance sheet or: ci Statements soli at visions or Allocat Costs ax R rts o ess eets es: recia on on Assets ance tion es Returns and es e urns ster er SECTION B Semi-Annually 187 APPENDIX F (continued) SECTION A FUNCTIONS, ACTIVITIES, AND ACCOUNTS TO RECORD POST e ransfer o ta rom ourna s or ectro a a ee 3 to ers e tries ers rom et 0 Journals e Ad usti Entries to ers The lo Entries to ers he 'aste and Scr Materi s hase 0 Mat 5 e ssuance o teri 3 Return 0 teri s to tores Post-Clos Entries Reversi e of a Set 0 oks ta ers ecial vouchers es or Set of Books ta or ectronic t - Later to e s on 3 es tries Rever es st- 0 tries to ento s e aste r t es to efective o tri or ect and ect sts or th se 0 terials or ssuance o t 3 tries or e urn o teri s to es or ections anat ons or 5 Accounts sits Recon a ons ax es entori nation Quarterly Semi-Annually 188 APPENDIX'F'(Continued) SECTION A FUNCTIONS, ACTIVITIES, AND ACCOUNTS AN OR DO : Waste 8 il e an e Reco Withholdin Tax Records tate P es ax Records surance Reco s ira ons et nventories ob eets eco s 9 Sales st ance or r Materi erh rect sts stra ive s s u on sts s e r voices tatements mat sts se or stri ut on ervice t t to ct on a stem ternal tro cm of ternal eck t t Account Activities t o ouchers ccounts ween ons or es e s e and umns e ccoun 8 av 88 S 880 Hi e es tt e ection of a Cashi SECTION B Monthly Semi-Annually 2189 APPENDIX F (continued) SECTION A FUNCTIONS, ACTIVITIES, AND ACCOUNTS COMPUTATIONS FOR: es Handle ime ards Handle Jo Tickets e a 11 our or er ece or centive o inat on ime t ums aca on and o t s cc emiums zation an sation e 3 var e et 03 st of C en ries No. of Da ento eed en to Purchase t se scoun s scounts on es SECTION B 190 _ v _— v:_- ' -‘ _, , 7*.“ ,_—_r -P-‘QAIV’V-i - . ' 'i APPENDIX F (continued) 191 SECTION A SECTION B Semi-Annually FUNCTIONS, ACTIVITIES, AND ACCOUNTS COMPUTATIONS FOR: con't st Method of Financ Pric Level Ad ustments orei Exchan e valents ta or En es surance t es ec at on tr t ts o 0 so escence letion ect e Accounts ccoun es tents zat sts sion of t R lac t sts or ui m t c mers e e ce 0 8 st Standards 0 ume ation e es 0 ume e APPENDIX F (continued) 3192 SECTION A FUNCTIONS, ACTIVITIES, AND ACCOUNTS the Base for Distribution of Service on s ess ts Divisions DIRECTIONS: Indicate by a check mark (vfi which of these systems are appro- priate to your firm. Type Organization: Tax Basis: Proprietorship Cash Partnership Accrual Corporation System of Cost Accounting: Bookkeeping System: Job Order Single Entry' Process Double Entry Standard Sales Method: Direct Cash Only Cash and/or CreaIt CHI~SQUARE TEST FOR SIGNIFICANCE OF DIFFERENCE IN SAMPLE AND POPULATION FREQUENCIES FOR SIZE OF FIRM; APPENDIX G 193 (Fo-Ft)2 ngEmgfogizg N§¥E£é%%22’ obse::::r{:::::zical (Fo'Ft) (Fo:§;)2 ft 0-h9 23 10.36 11 10.3 .7 .h9 .Oh76 50-99 36 16.22 18 16.0 2.0 h.00 .2500 100-2h9 39 17.56 20 17.u 2.6 6.76 .3885 250-7h9 33 1h.86 15 1b.? .3 .09 .0061 750- 91 h1.0 35 No.6 5.6 31.36 .772h Total 222 100.0 99 99.0 Chi square l.h6h6 NOTE: Chi square of l.h7 with four degrees freedom could occur by chance.more than 80 per cent of the time and thus showing no sample bias other than fluctuations that are inherent in random samples. 1Leonard J. west. ___ Journal, Vblume V Number A (July, 1963), pp. 118-121. "Sampling Techniques" The Delta 2i,§psilon 4.“-.— _r: A .r. . H. q 19h APPENDIX B ANTICIPATED 181-COUNT! mm mm 1'0 1970 PG TECHIICAL ACCOUNTANTS Anticipated Net Huber Anmal Need To Annual Classification Increase Turnover 1970 leed“ Technical Accountants 68 3 S 208 52 *Anneel need no determined by dividing the net number of incl-embythe tcnryeare endedding totheenmr. the annual turnover. ' lll‘lll'll'l’ APPENDIX INCREASE/DECREASE OMARISON 0F TRI-COUNTY EHPLOIMENT SINCE 1960 I 195 Relationship'by'NUmber of Firms Type No Cannot Position Increase Change Decrease Determine Total Total Hbrk Peres R 7b 1h 32 2 122 it" 60.7 11.5 26.2 1.6 100.0 Accountanc - Oriented H AZ 55 21 h 122 a! 314.1; 145.1 17.2 3.3 100.0 Technical Accountants N 36 67 16 3 122 1 29.5 SR9 13.1 2.5 100.0 ‘*Includes technical accountants *‘Read percentages horizontally 196 .3338 con—home!“ one: condemns.” .3 05 no 3.3 «Du—ooh col-ounce ope: condone: .3 on» .«o 34 .m... managing eeuevnoouom use”? . caches one: hfiflgeo non genome?" c.3432“ H33. Ban $3533 33 magnum age—Soon H3303 no non-5n on» 3. menopause 33.9593 93.3303 0mm on... no and.“ Hooauofiaze N; N NN H .13 m OS on - .. 3 Soogopm osoofiefiafl m.NH - .. .. - .. - 1mm 5 0.3 .R S N833 33... 335% 12 98 3 .. .. o.N a 92. on .. .. om 9833 on confine gauge... noon mda .. - .. .. oi N 98 3 one m cm 83.38 Sagan 35584 mega. man .. .. .. - .. .. 1: m .18 N: Hm .833 Johan 535% m .. .. u - .. .. CNN 3 E. .. Nm baa Noun—5e some you 3633ng oooaofi o u - .. .. .. . 9mm N 18 Nm mm 833 oangaooom 8.582 535.: a. u - .. - Re a «.8 3 Tm m 4m ioeeaoowfipoon scone o ode a .. - 1n N 18 m: .. .. cm 25.55 33334 Snack min . - u .. 1m N 1N 3 «a: N on 3338 .3588 35534»; m... Tm N - u ma m .18 3 ad a am .83; .8» .355 Benet m u - u .. .. u .18 8 0..” N G .833 genes fie: 2384 3.398 no 8835 an: N ca a .. .. .. .. 18 No to; a 3 338 no oca 1.53.5 8N .355 Hausa condone N u a u a u z u z u z a Bragg $38 bag by; goo: 38: season. 3 Anon Npflpgodtmauounem 3.3a ohm H9534 Mme GEOEA ZOHHmomomm HQ 30 5 2H 9mm; 9.23.2884 Adqumoma Hm EDEN” WHERE—”Hod 05928004 H. NHBQE 197 - - .. - - u «N « «N« R 3 signage... «« «.2. «N .1N H «.«H a «N « .. .. 3 3.3.5 .3. 833.38 3392.55 «88.... «3.3. «.N« «.4 N .1N « .1N a o.«~. N« «4: o .3 .358... 35684 no gas. 33. «.N« .12. R - .. .. - .13 d .. - N... 3.58 «58.8 .39.... o« .. .. .. .. «.1. « «.3 «N o.«.« o N.. 3333. 3638 33.33.33 o« .. .. - .. - u «.8 NH 1:. o« N: «8.8.. .fifioé .38 535.... o« o... « - .. as: o «.3 «N «.8 « 2 A386 .38. .38.... 5 as: .8 soon-£0: 25 «.«N «.N a - - .. - «.R N: - .. «a 38.88. 32%.: 3H8 .38 as. 3338 335 23 «N «N H .. .. .. .. «.2 3 o.«« .a «a 3:803 8:25 .59.... «.«N .. .. .. .. .. .. .18 R oz: 0 3 33...... «No.5... 33 03938.”. .3 8.8.. No new 1.53.8 8.: 2533 8. 38.8.. «.«N H.« a .. u «6.. 3 «.«a 3 «.4 N .3 3.3.3.5339 ogoafim 953. «:8 «.N H «.N a «.«H N «.«N «« u u .3 £33... 383m .8“ agencies 25 «AN .. u «.N a «.3 o «.8 o« «.N H .3 3.3.38. 3...... 308.3930; «AN .. .. .. .. «13 o .18 o« .. .. .3 22:... 93.5.. 35183.5 25 «AN - .. .. - 1.: « «.«N «« «N a .3 33.2.8 .825 «5.38;qu «4N . .. «N .n .10 « o.«N Q «.«o «N .3 can. .464... 35.8 «.N «.4 N - - 93 3 «.«« ..N NN .« «a 3.8.5. 5.9 .<.o.H.N§ «a .. - .. . NN a «.2 «« o.oN « «a 1.55.. «388 5353. «H «.0 « «6 « c2: « o.«.. ..« .. u «a 583 .838 «5.3. S NN H .. .. NN a «1««. .3 - .. 3 3:803 .833 .238 «.5305 «.3 «a .. .. - u .. .. «N« «H «.3 N« 5 5a.»... 23.2.8 .3 .833 .35.. 8.883 «35.... .3 u a a a u a u a a a z «35...: .38 .533 «akin-038x «.983 as... -3 H309 «35.3 guy...— 833...... AvgchOV h. as 198 o .3. ‘53 3 383.3 8.. ..HHo&H£.. 085m fifififi man-32a caning g 0.8 Hm ma m .. .. m.~ H .. mm 5.8 HSHBE .3 uflaquaH 23 W3 m.HH 4 .. .. Hum a HR cu 5mm m mm 3.808 “8H. gHfifiH: fifififi mém .. n - - .. .. ~23 mm min «H mm 3.3.5 no 33H 2.2. on 8. undoing odnoupoodm no.“ 38 0.39.8 mém .. .. - n .. .. ode Hm 0.3 .3 mm .1233; Ho 88.93 3» 23oz mém - .. - .. o.m~ m H.Ho mm QRH m on an: :15 .38 .3358 38m 8&5 m.~m - .. - .. «RH m H6» Hm .. .. on .3538. gonna mfiHHomwfiiz m.~m 9m ~ - u .. +.. QS on H.HH .. on 833383 cfldv pg 5335 m.~m .. - - - u .. n6 m RR R on chap-8 3325 you ufiflflafio m.~m ;.m N .. u 4.2. mm «.3 o - .. R Shogun was 3.335980 9%."ch 33m 9235- mg... v.3 mm flu H u .. Ram HH - .. R nonfi gaugqmofifiom m4... m.mm «w 3.. H - - 9R .3 .. .. R 3.33 op npo& 9:38 2.8 mg: .. .. - .. maH .. «.3 R .. - R aoHBosa oaoea £3..."ng Bu H888 933. m . S - .. .. - .. .. 0.5 mm flan «H R nousboouom 330 mg: - .. .. .. .. . HR NH v.3 mm R 33.8.5 “axiom H85 535...: WE .. .. u - .. - 92: on u .. on 39132808 flan flack m.~a .. u .. .. 93 o 0.8 Hm o.~ H cm 833a 8303; 38c mo 38 g Wm; . .. .. .. .. .. Qm N ~43 on an Bum ha 8.33.? HHSFH 8.? m4... .. u - .. .. .. Qm N SR on on gsaHHohum 033. mg 9mm Hm m.oH a m.~ H man NH m.~ H R .33 338338: H883 3550 m.om - - - .. 0.8 a fimm fl m.~ H mm 32......“ng 33m 8.2380 mam - .. .. .. - - «.3 on E. m R .833 H283 £33.: mam . u .. .. u . m.~ H m.R mm mm sang HHoanam 3238 3% 3H H. .. .. mg m mé. a m.~ H o: 2:35 33334 .5 38 3380 mm méH H. m.~ H .. . 9% 4H 93 oH 3 ham 5338 93 838a» 3&8". mm a a u z u z u z u z 2 3.334 .3qu .3385 535 bug .338: 583 H33 a5 .38 Avogpaos h. Human: .-- 2"” '3‘": .mmsmf' ,.u.., 199 I I I I I I 903 cm I I ma §§3§33m§ m.mo I I I I I I H.N« NH «.N: NH RN .838 .38 .33qu RRN HR H I I I I N.«N 0N «.o N «N 3.83955 .534 HR N6 N I I R RH a 98 ._N I I 8 31m 3 Jana-E no £30 .H..— 0543 and 05-538 on m6 a I I «A a «.fl. mm .10.." m an 33.8» «coo .333 35134 2. I I N.R H I I .13 RH .34 RH HR £858 .38 9:5 «833.58... NN I I I I I I N.HN RN N.«N N HR 38.... no 8.5.3 .5 8N .338 839$ NN I I I I I I n28 ma Won NH Hm goofing 3358: 2.. I I I I I N.mN o N. 4N RN HR 3% .36 N38 5353. NN m6 m I I mINH a «28 3 I I «m aoHam 3 3.8 No £8 .5 33.5 o5 €88 «.HN R.» N I I H.R H N.HN «.N 4.« R NR .833» :8 H1235. a; «.HN I I I I H.R H c.o« «N R.» N NR 3.8 asafifidaofia .5 .355 tank «.HN I I I I H.R H o.om 3 «.3 RH NR 8.. 3 3.8 .8 83832 8N 3°33; «.HN I I I I I I H.NN «N «.HN N NR «Snack 38 835%: 33 H33... 8.318 «.HN I I I I I I «.No 8 «.NR NH NR gag as «8.6 399.8 «.HN :.«R RH I I N.mH m .12 .3 NR H RR 332 no 833953 .3.“ 83.2.8 25 Ne o.R H I I N.HN N NR» HN H.« R RR 3.8 93.3834 you 38.38: as No I I I I o.R H N.HN N QRN RN RR 1.3% .38 no» £358. No 93 ON «.N H I I MIR 3 I I an 3.35 ”HR-nova Page: No 0.0m 5 I I I I «Ion h 4.3 ca an 003.com 3930 3 ~33 c «.N H ".23 a m.mm ma I I an Buchanan. .Hou 30233.33 on: 3 Rd R I I v.8 N «.Nm NH N.NH o R Eggnog .3383 3580 N... «.N .H. «.N H I I 0.8 N «RN «N ..R Raggflaaofififi 833.6 38.6 No I I I I I N.HH a Nae R R 3:823 and... 8.3.8 No a a u z u a u z u u a 3333 3.8 .H.: D3248 hangs. has: H38 3 I! Revs»: 93.828 quit «gage R ER 200 HH 0‘“ o 0 0 am Shanna Hun. 539$ mg méoH o 4H I I N H H.NH R N.NN N N... H 4N 3.598 9:222... 5:93.. 3.3 R5 N I I N... H o.oN NH NéH ._ .HN ghofigfi HERE 8. oloé anagram m..aH I I I I R5 N N.HN NN I I 4N 389 232335... «fig R33 98 m o... H 98 m 9.3 HH o.NH R mN Hgofiaflb 3.38 8Hpo€o£§ 8H I I I I o.NH R 9.8. HN o... H RN 326 SHHBHBaa «5.5 8H I I I I o.» N 93 OH o.Nm RH RN 3%: 5338 No 83838 oHcfim 8H odR N I I o... N 9.3 H o.NH R mN «38.....83 83.35 3.9.5 8H I I o... H I I o.NN N 98 NH mN “Sana 9308.. 5353. SH N.R RN I I I I N.R H I I 3 38m No paucono RAN 93 RH I I N.RH a o.._R N I I «.N 2&«m 95.83 853. H35 SHEHUIfioN 25 m4... m.HH R N.R H N.RH a R.$ NH I I 0N 38.33... 9805 .H.. :55 2H3; 33. 35 me: n I I m.m H 4.3 NH Qua m cm Ana—35.3 and unowpagov 3.33m 353 533...: mim I I I I I I 9.8 NN HRH : 8 8H8 2534 33 I I I I I I R.N.. HH N.Nm mH 8 H858 8§3HH<§ENB§ 3H6 535% 33 N.Hm fl I I I I H.N: RH I I NN 3.5084 eBaHam E... 33. W8 «.N N I I H.HH R 93 NH I I NN 83.5.5 08285 N8 8338 25 man I I N.R H I I m.HN NN N.HH ; NN IHIHNBJH 9:8 a 333 288 3. «3.3.8 flack mam N.R H I I H.HH R Nd; HH ms... NH NN atonnm Nonfiodmu mg 33 I I I I I I 4.2 NH QNN o NN atop»... a... 33.33. No .353. B... 283. mg .. I I I I I N.o.. HH RNR oH NN H553 33.92 535...: m3 9R H 9R H H.N N N.No NH N.NH m RN $38 as .3: 325 .53 RR» I I I I H.N N R43 RH YNN o RN anon «8333 2.23.... m.RN u z N z u z u z u a z .5592 320 2.285 NHHNBE 3.8.56 3.8: 538: H38. a3. I3 gigs. €28 aoHfiommNN AuogpgooV N. as; 201 o.N.. S m... N I I R.N.. R I I HN .8058. 83.58... 3.888 859... 8.8 38.88 mdNH oéN o I I R...H R H.Nm NH I I HN 88883. «HgooHHooé 3.5.8 mdNH a... H m.R N o... H H.8N 0H m... H HN 82.88 898388.. ugopon 8.. «888.88.. méNH I I I I I I R...H R N.Ro oH HN 3883.. 88.... 3888 mdNH RéR o o... H H.N N 93. HH I I NN 3:838... H888 883. oNH N...H .. H... N NéH .. m...m NH I I NN .8885. 8888.8. 828 8888.. 8...... oNH H... N o... H QRH R m...m NH NdH .. NN 3.8.5.. 38...... 8.. 88.88.. 3.8.8 oNH o... H o... H I I N.Hm 3 H... N NN 9.88.. o... H388. 88m a 38.. 80.. oNH I I o... H o... H N.NN o 8.8 ..H NN 38...... 88...... .888 N58... ONH o... H I I I I odm HH ...m.. 3 NN £8.88: 8 888.: o... .88.. oNH I I I I I I N8 mH QHR N NN .88... 8.88 .8 8883...... 5.358: oNH c... H H.N N QRH R N.NN 3 I I NN 9.88 8838.8... 8.8 E88883. 8898 oNH I I I I I I R .NN o N.NN 8H NN 9888.. 8 888...... 8.8.8.... oNH N.Nm NH I I N8 N H.NR R I I RN 858.. 85... 888.8 .3 83808.8 82.8.. HHH I I R... H o.HN m N.RN NH I I RN apagflm 88.082... 8 .88 8.9.... HHH I I I I H.RH R m...» 8H ...NH .. RN 33.88 3 888 9.883: 8.. 88.32.80 HHH R... H R... H N... N «.N: HH R...R 0 RN 8.88 8.8338 38.3.8 HHH N... N I I R... H 95 HH N...R R RN 8888 88.88.. .8 .8... .8 88.3888 3.8.8 .H.. N... N I I I I 95 8 R... H RN 888...... .88 89.88 8584 HHH I I I I R... H o.No 8 N... N RN 888.. .8... 8H8 388. 885...... H R... H I I N... N R.RN NH H.RH R RN 3.... 88.88 32.8.. HHH I I I I I I R...N 8H N.HN m RN 8.88 8. 38.3.... 8 8.33. a... 8.. 8.8.... 8.88.... HHH u z u z u z u z u z z 8:58.. 88.5 33.8.. NHHsafi .8385 258: 3.8.. H38 88.. I88 8:58.. 3.3.8.8.. 8.2%”... Auognhoov .. figs ,gu. 'ti 202 m.mm 3 9m a 1d N N.NN m .. - 3 53.3% 53.5 3538»; m6: H.HH N H.HH N N.NN m 0.8 a .. - 3 H338 audio: ofiggsfiusa m6: .. - .. .. N.NN a ~28 NH H2: N 3 38 .545 a... :8 8824 oggga m6: .. - u .. N.NN ; .13 fl 5: m 3 3.383 .35 you 9.8 ouaunbd 0545 a $38 93H - - .. . dd N «.8 3 .. .. 3 agopflm saga uBéfioBoo 933. m6: 9m a - .. 9m a N.R fl dd” N 3 avaoom gags 53:2: mi: 9m a .. .. .. .. N.NN ma N.NN : NH 8.88m 535a .omafiomm 63$ 5353. m6: 9m a .. .. .. .. :3 NH N.NN m 3 £323. .8 ogofiém aflfia 8&5 m6: - .. - - .. .. QR 0 ~28 NH 3 use. banana egg m6: H.N: a 3: N - .. 4.5 a .. .. S «538 paid: .8 .38 P nighgfi 3:38 02 $8 m .. .. 93 m 4.3 m mda N S aofloéoumo» 330 pan-pas Satan Nfipfiflpqa .5 23m on» gap-a N8 38333 03 oJN 4 - .. 0.5 m N.No NH .. .. NH Sofiugfi :0 530m .58 pan 0553 can 93.538 on." .. u .. .. m6." N N.R 3 04m o 3 385 «.8 23.8.32 N53. 93 u .. u - - - N3» 3 95 n 3 x8: 832.3 c808 3 nodfié 032$ 02 93 o 0.3 m .. .. 93 m .. . 8 3.39503 :8 828 83838 03.85 ofldaq 33 2:538 RH 9mm N 93 N .. .. 93 c 93 m 8 85.: 8d 3 aoauoaafifl 8.3.8 H2 98 a .. u 0.3 m 93 m 98 a 8 8308on op 3.8 pagan 353 no 835.393 non 3am on... 93538 NS .3 H odd N 9m H 98 3 - .. 8 32.85 ufiuonaasaa €38 8N Bofiflauoc H3 - .. .. .. u .. o.m H 9mm NH 8 inn-8m aha 3E3 399.8 RH u z u a a z u z u a a b.2333 .396 #185 h hug ~38: 598: 18 3 Ala 3232 sud-nag... Bataan uL 3083.33 E. ”SE 203 4.: 3 H.N a .. u «.3 N H.N a 3 388 «333..» was 82ft 3N3 N.HN n H.N a N.Na o 0.8 a .. - 3 gnu." .33 33835 3N3 3: N .N.N a - .. «.3 N ms: N 3 85.: 2.8 out»: .3 u3u3a33 3.338 3N3 - .. u - N.HN m N.R m N.Na o 3 gig .333 5383 sale .5 ad: 0 N.» a N.» a v.3 N u n 3 3.38 38.38 32.: .3 NéN a 98 n - .. N.R m 98 m 3 an: 353%...." 8N 203398 .3 o.oN m N6 3 $3 N «.2 m NdN a 3 3.38 £65 43 .. . fin." N o.oN n N.R o 4.3 N 3 3.3.8338 2.38.38 you 3398.338 .3 u u .. .. N.3 .. «2mm o 98 m 3 =82.” 3. 3.8 «53831 3N Sofia»; a3 - .. .. . N6 3 98 Na «.3 N 3 Eng gnfihaa N33. :3 N6 3 .. .. .. .. ode N mam m 3 .833 banana 5353 .3 - .. - .. u - N6» 3 N.R m 3 .333 :38 ufig 535.: .3 - .. .. - .. u .13 o v.3 N 3 .833 3223 use: 335‘: 43 m.NH N N6 3 o.mN a «.3 N - u 3 3.32 3.55 ogggsa 03 mNa N - - n6 a New 3 W3 N 3 0333 £833 3:98 03 u .. m.N.n N .. . N.8 S 93 n 3 33353.3 «5.3.684 39233 33¢ 03 N6 3 N6 3 .. .. cam o m.Nm o 3 .oflsaopfi 3389.8 6.38.5.5 03 .. - .. - N6 3 o.mN N." 93 m 3 acacia 3. 8.80 9:»..832 N8 30332.80 03 u u .. - .. .. 0.3 a 93 o 3 .833 33.583 .33 535.2 93 u - .. - .. .. N.NN N 3% m 3 gnu-3A £8 8N 3033380 e3 95 o N.HH N .. .. N.R o N.m H NH 388388 3998 3.3 u . m.m H 3N3 m W3 3 - .. N3 Balsflm 0.85 .838 uSéfioEoo mafia: m.o3 N.m a .. .. .. .. N.R. 3 m.m a N3 3.1588 €235 Sum-8 mdma - .. .. - .. u - .. 0.83 N3 NH 8326 mafia: 34 m.o3 3.3 3 .. .. 3.3 N «.N m .. .. 3 33.: 8.3mm mafia-a .3 8338.58 33.8 no: u a u a u n u a u a 2 N.Nfifls‘ 825 3.35: 38.2.8 558: an! 33 use 535» 3 31.828 83% N Avévnonvv h. Hug .. .. .. .. 3.3 3 N60 0 - u N 308330 833808883 333 «4.3 u .. .. u .. .. 0.03N .. .. N 83 3.880 NANA c .. .. n .. .. «.«« « N.3 o N 38.800 . 82383.2 05 8.8an 888.5 38.33 NANA 0.0N N 0.8 N 0.8 N - .. 0.0: a 3 823083 0:33 .8 800 3... 309.8 03 0.8 N .. .. 0.0.. a 0.0.. a .. .. 3 “.880 No 830 8n 03..» 800 .332 05. 83533 03 0.3 a .. .. 0.0m m 0.3 a .. .. 3 “383 383V 0.33 83 33 0534 05 83.238 03 03 a 0.3 H .. .. 0.3 a 0.0N N 3 92.83 8.0080 03 - - - .. 0.3 a 0.04 a 0.0m m 3 830383.035? 3.33 330 03 03 H.N a .. - 4.3 4 «Am 0 .. - 3 033 884 3 8.3 0&5 05 .3583 43 N.NN « .. .. N.3 N N.3 N :3 a 3 303330 8E 88 033 43 u - .. .. 1N 3 «Am 0 4.3 a 3 8330.0 8:233 5.333 43 N.3 m «.0 a «.0 H N.3: m .. .. NH 88885 .8823 88343883533 m.03 0.3 m .. .. N.3 N N.3 m - . NH 88803.0. 855 N0 83835 03 8.80 038: n.03 .10 a «.0 a «.«« a «.«« a N.3 N NH 883.3 8N 880 88838: 03388.0 .3 8033380 N .03 .. .. 0.3 N N.3 N - .. N80 0 NH 1.353800833008383 3.380 «.03 0.0« ; N.N H N.N a 3.3 0 N.N a «a 3803 .3853 0.«N « 0.0« a H.«N « H.«N « - .. «.n 35.3 0.8.83 .3 80338.8 0NH 4.3 N .. .. 0.0« a 0.«N N .. .. «3 .33 8m 8.888 .3 undone—NH .58 .8.— 0534 and 83538 3.3 H.«N « .. .. .13 N méo 0 u .. «3 38m .36 3 83583 05:5 05 8.33.0 0N3 .. u - - .. .. 0.0« a N.NN. N «a .0338 888m 8.0 333.: 0N3 0.«N 3 - .. H.N a «.3 N .. - 3 .80an 5.9 088388.805 3: u a u a a a u a a a a 5.933 820 33:5 333 383.33 3.80: has: 333 83 3.8 .3584 33.883 838% Avg—€33.33 N. Hug“: 205 .. .. u - #3 H 9% m «an m o .33. E838 3N .. n - - .. .. c.8Ho - .. o ginofiaflflflfl 3N .. .. .. .. .. ,. - . 3.2 o o 3.5 Ho .6on 8m P HHBFH Silo 3N 32m .. -33 mnéHH a .. H. HoSnuozafiuom .g .328 .53: Ba 3338 méa 3: H H.HH H 3% a H.HH H u .. H. 33$ 38: 3 .33 oflHaHBuSHEBa WEN .. .. u u .. .. H.HH H ~33 o H. .353 3 gcfifi HE: 338 mém .. .. .. u .. - 93 m H.HH. m H. 8H!» 183380 cg m.8~. 93 u .. - 93 a 9mm ~ .. u o 033 8333qu £3.33 3 33: a5 ofidaa Ba 3538 SN .. . 9mm a 93 a 9mm u .. .. o «523qu .3 33.: $8 .5 338 “on 33239-8 mom m.~H H m.~H H m.~H H mag m .. - o 38:3» 8.qu €38 non 3°33; 8N de H m.~H H m.~H H 9mm m Eh m m 3-3.3: 3380 new m.~H H m.~H H - .. o5. o .. .. o 883.3 833 338 .8“ 8033380 . mom 9mm m .. .. - .. m.~H H m.$ m m 35H :95 $qu 3a mom .. .. 93 w .. .. cam : o.m~ u m 83. H2333". oHBam 8m m.~H H .. u .. - WS H. - .. c 35584 H8833 3% 8m .. .. u .. u .. 9mm m o5. o a .3833 833$ op :25 3350 now 33 a «.3 a H.HH H H.HH H H.HH H a x86 1:qu Ho IngmafiHHnSa mAmH GR m 4.2 n «.HH H .. .. N.NN N a H828 Hausa no aSEmaamHoa mémH «.2 n .. .. N.NN u m3: a - .. a $83 H38. 3 «was .58 you 33:: can 3:338 m.§H - .. H.HH H QR n mi: 4 H.HH H m HESS you 83 Hum 2:338 ca 30333 meH 4.2 m H.HH H u .. m.mm n N.NN u m .833 unocHofioofi fififiqz wig u z u z u z u z a z 2 E534 “8.6 21855232 5382 5H3 38. a -H.}. 535.34 3.588.. Bfinognm llll.|.l|'l.ll.. {.l'l'lll II {it ‘III'II,.: t ‘1‘ l'i‘t 1"! ’II'III‘IIAII Ganges H g5 206 98 N - - .. - 98 H .. - n 83838 No 32: P 8.33%.: 3.5.8 m.HnN 4.8 H n. - «.8 H 98 H .. .. n 3538 .3 8335.8 m.HnN .. .. .. .. .. - .. .. 98Hm m BaHNBHpfioaHEHHoKuN 8.8-8 m.HmN .. u n .. .. .. 93. n 9mN H a 883834 329 09:8 mNN - - u .. .. .. 93. M 9m... H 4 3.2.38 “.32. , No 38 23a annuals-g 8H Sofia»? mNN - u - u u . o.mN n o.mN H a uaosuoum aquu No 3.8 .H.—85> gain .5 839.3850 oNN 98 H 98 H 98 m .. .. .. .. m 338 H.338 o... 83383 323:. Ba 93588 maNN 98 H .. u 98 a .. .. - .. m 3.5 8.383898 05533288 m.mNN .. .. - .. 98 H 98 a - .. m «3238 .8 38328 «5983038 3N 3388...: as m.mNN 98 H .. .. .. .. 98 n 98 H m gain. :88 maNN . .. 38 H - - 98 m 98 H m 883.8: H388 388 mANN - .. - .. .. .. 98 a 98 H m 3388-8 Ho 38 €38 8N 8033880 mANN m.mm m u . N.oH H u u u - 0 vegan: 3&8 -05...H?§m .3 8330288 3:98 oHN 98 N - .. 98 N 98 N .. - e 3.38 28388 93 8.2388 9:8...» oHN m.mm N u . m.mm N m.mm N - u o macaw No 2.8 .8 uBoufiHn 2.32: Ba w 055.38. OHN N 0H H .. .. 98 m .. .. 98 N 8 3:89.83 Hop-H.038 3850 oHN . .. 98 N 90H H u .. 98 m o A5358 .255 38803 8288 a... n2: :8 3858 oHN N.3 H .. - .. .. 98 N 98 m 9 888 83:38 93 .8 “352 B... 3.? 3N a z u a u z u a u z z 8233 “8.6 3355 3.35 3."; 358: 538: H3... .28 .H.!” 53583 €28 coHfiomouN Auoandagoov u.Nanmmm< 207 . .. .. - u .. .. - .. .. o 288 no 33» 8.59.8 m.3N .. u - .. .. - .. .. .. u o HHHpoooo 8N Boflflafloo 988 .. .. - .. - .. - .. .. .. o 883 3938 mg 993 u .. .. u u .. u .. n .. o 0302 3853;. 03 méam odoa H .. n u u a .. u u H non-a and gnu-Bugs .Hom 3393238 mam 98H H .. .. .. .. .. - .. .. H 3.3.58 3N 33325.8 3N 98H H .. u .. .. .. - .. - H . 333:5 Sago 3N . - .. . 98H H .. .. .. .. H 3.3838 .SN 3°33? 3N .. u - .. .. .. 98H H .. .. H 388.5 0.52. No 3.26 3:33.38 33538 .5 30338.8 ««.N u .. .. .. .. - a 8H H - .. H can»... 813 .3 uoHSaEcH 8.8.8 3N .. u - .. .. n .. - o 02 H H H358 88 39.8 533.: SN 98H N - - - .. .. .. .. - N 332m gingham Ho 5:3,.qu 32:8 9me 98H N .. .. .. .. - u .. .. N .3323 808 33.8 903 98 H 0 cm H .. .. - .. .. - N .33ng 8.880 WRN 98 H .. - 98 H - .. - - N 3.8 832.388 .5 33935980 ménN - - 98 H .. .. 98 H .. - N 84...: 8824 38H! 3 aoHpopaoEH 3858 m6? .. - - .. .. .. o cm H 98 H N .333 .82038 5358 908 98 N .. .. 98 H .. .. .. u m 8835: .38 38.8 9H3 u z u a u z a z u z 2 5.333 .820 hHH 8335 hug—a NE?! 38: H38. 3 -3 5353.8 mam-8n. you 3%.”? 325303 a fig 208 APPENDIX K ACTIVITIES INVOLVED IN PREPARING FINANCIAL STATEMENTS AND REPORTS RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PERFORMED BY TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING DURABIE GOODS Rank Order In By Size of Firm Total 100- 250- 750 or Type Statement or Schedule (N66) 149 I 50-9912119 7119 More Accounts Receivable Schedule 1 6.5 1.5 1.5 9.5 1 Accounts Payable Schedule 2 6.5 1.5 h 13 6 Incme Statement 3 8 9 7.5 2 2 Balance Sheet 11.5 h 6 11 6.5 9 F.I.C.A. Tax Reports 8.5 1.5 3.5 11 17.5 6 Manufacturing Expense Schedule 7 13.5 13 1.5 6.5 3.5 Cost of Goods Sold Schedule 7 9.5 6 6 2 16 hployee Hithholding 'rax Reports 7 1.5 3.5 11 22.5 6 Materials Consumed Schedule 9 19 9 h 6.5 9 Federal Unemployment Compen- sation Tax Reports 10 h 9 7.5 17.5 12 Cost of Goods Harmfactured Schedule 11 13.5 13 h 13 12 General and Administrative Expense Schedule 12.5 13.5 13 11 h 16 State Unemployment Canpensa- tion Tax Reports 12.5 b, 6 16 22.5 20 Selling Bpense Schedule 1.11 9.5 11 16 13 12 State Sales Tax Reports 15 13.5 15.5 16 28 20 Efficiency Reports 16 30 28.5 16 22.5 3.5 Production Budget 17 25 28. 5 27.5 2 16 Operating Budget 18.5 25 28.5 31.5 6.5 9 Property Tax Reports 18.5 13.5 15.5 19.5 17.5 30-5 Cost of Production Statanent 20 25 20.5 25 13 20 Credit Rating Reports 21.5 25 20.5 22.5 9.5 26 Capital Statement 21. 5 19 20. 5 16 35 22 Alternative Cost Reports 23 30 32.5 11 17.5 30.5 Consolidated Incas Sumnt 211.5 19 20.5 27.5 28 23.5 Retained Earnings Statanent 21.5 x 25 17 19.5 35 26 Consolidated Balance 31061; 26 19 20.5 31.5 28 23.5 Departmental Statusents 28 35.5 32.5 35 13 16 Cash udget 28 13. 28.5 35 22.5 26 Capital Budget 28 33 32.5 27.5 28 16 Federal Excise Tax Reports 30.5 30 25 22.5 32 30.5 Company Insane Tax Reports 30.5 19 20.5 27.5 32 311.5 Making Sales Rdgets 32 25 25 35 22.5 30.5 APPENDIX K (contirmed) 209 W W f Rank Order In L By Size of Finn _ Total 100- 256- 1750 or LIZ-go Statuent or Schedule (Ni-36) 1419 50-99 i 2149 7119 p More Source and Application of hands Statemnt 33 33 25 22.5 35 30.5 Cash Flow Statement 31; 25 35.5 22.5 32 3h.5 Branch and Division Stataente 35 33 32.5 31.5 28 30.5 Research and mvelolnent hdget 36 35.5 35.5 31.5 22.5 36 210 APPENDIX L ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PWORMED BY TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING DURABLE GODDS A; Rank Order In By Size of Firm Total 100- 250- 750 or Type Analysis or Interpretation (N-25) 1-119 50-9 2149 7119 More Analyze Accounts Receivable l 1 1 1 3.5 2.5 Analyze Per Cent Costs to Sales 2 5 h 2 2 5 Analyze Per Cent Expenses to Sales 3 S h 3 1 9-5 Comparative Analysis of Income Statements 11 5 h h 3.5 9.5 Comparative Analysis of Balance Sheets 5 S h 5.5 8.5 13 Analyze Accounts Receivable Turnover 6 15.5 8.5 10.5 6 5 Analyze Average Collection Period on Receivables 7 5 13 20.5 8.5 2. 5 Determine Per Cent Return on Investment 8 15.5 8.5 5.5 10.5 9.5 Determine Average Cost Per Unit Hamfactured 10 15.5 18.5 10.5 6 7 Determine Average Cost Per Unit Sold 10 15.5 23 7.5 13.5 1 Analyze Working Capital 10 5 8.5 20. 5 6 13 Determine and Analyze Current Ratio 12 9.5 h 10.5 13.5 16 Determine Per Cent Increase or Decrease Per Item 13.5 15.5 23 20.5 13.5 5 Determine and Analyze Receiv- ables to Sales Ratio 13.5 15.5 18.5 10.5 16.5 9.5 Determine Inventory Turnover 15 5 25 15 13.5 13 Determine Sales to Asset Ratio 16 15.5 18.5 7.5 20.5 16 Determine Acid Test Ratio 17.5 15.5 13 15 16.5 18.5 Determine Book Value Per Share of Stock 17.5 9.5 8.5 15 20.5 21.5 Determine Per Cent Earnings to Total Assets 19 22.5 13 20.5 10.5 21.5 Determine Plant Assets to Long- ' Term Liabilities Ratio 20 15.5 18.5 20.5 20.5 16 Determine Equity to Asset Ratio 21.5 15.5 13 20.5 20.5 21.5 Determine Dollar Earnings Per Share of Stock 21.5 22.5 13 15 20.5 21.5 211 APPENDIX L (continued) Wr In ‘ BySize ofFirn Total 100- 250-750 or Type Analysis or Interpretation (BI-25) 1-h9 50-99 21.9 719 More Determine Dividends Per aiare of Stock 23 22.5 18.5 15 20.5 21.5 Determine Per Cent Dividend meld 211.5 22.5 23 20.5 20.5 18.5 Ibtorlins Liabilities to Capital Ratio 211.5 22.5 18.5 20.5 20.5 21.5 APPENDIX]! 212 LEWFRS MAINTAINED RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PWORHED BI TEEHNICAL ACCWNTANTS IN FIRIB MANUFACTURING WRABLE GmDS Rank Order By Size of Firm Ledger Maintained 13:16) j1::15:--99 [213:- gig- 71512:. Accounts Receivable l 2.5 3.5 Payroll 2 1.5 1 2. 5 6 3. 5 “33.222.25.331? 3 3.5 3 2.5 6 1 General Ledger h 3.5 h.5 h.5 6 3.5 Plant (Fixed.Asset) 5 6 h.5 6.5 l 3.5 Expense 6 5 6.5 6.5 6 6 Cost 7 7 11.5 h.5 2.5 8 .Haterials or Stores 8 9.5 lb 9.5 6 7 notes Receivable 9 9.5 9 9.5 12 10.5 Notes Payable 11 9.5 6.5 13 12 10.5 ‘ Finished Goods 11 13 m 9.5 9 10.5 Factory' 11 13 11.5 9.5 10 10.5 Insurance Register 13 9.5 9 11. 15 13.5 Stockholders 1h 13 9 12 15 15.5 Branch 15 11.5 11. 15.5 12 13.5 Subscribers 16 114.5 16 15 . 5 15 15 . 5 APPENDIX N 21.3 JOURNALS MAINTAINED RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PERFORMED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING IIIRABLE GCDDS Rank Order In 7 By Size of Firm ‘ Total 100- 250- 750 or Journal Maintained (NI-11) 1-119 50-99 2119 7119 More Sales 1 1 2 3 2.5 1 General 2 3 5. 5 l 1 2 Cash Receipts 3 3 1 3 7 11 Check Register h 3 5.5 3 2.5 7.5 Petty Cash Register 5 6 3 8.5 7 7.5 Purchases 6 5 h 6.5 7 1; Sales Returns and Allowances 7 7 8 5 13.5 9 Voucher'Register 8 8 9 6.5 14.5 11 Cash Payment 9 10.5 7 10.5 9.5 6 Purchases Returns and Allowances 10 9 10 8.5 9.5 10.5 Conbined Cash 11 10.5 11 10.5 11 10.5 APPENDIX 0 21h PREPARING OR INITIATING DATA ACTIVITIES RANKED IN TOTAL AND BY SIZE OF FIRM ACOGIDING TO THE PROPORTION PERFORMED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING WRABLE GOODS . Rank Order In L By Size of _Firm Total 100- 250- 750 or To Prepare or Initiate ("'21) 1-h9 50-99 2&9 7&9 More Regular Journal Entries or Journal vouchers l 8 5 1 2 2 Entries for Corrections 2 5 9 6 1 2 Adjusting Entries 3 12 5 10.5 h 2 Explanations for Each Journal Entny h 2.5 13.5 10.5 h h Expense Accounts 5 12 5 6 15 6 Closing Entries 6 12 7.5 6 7 8 Bank Deposits 7 1 1 2.5 19 18 Bank Reconciliations 8 5 2.5 2.5 19 1h.5 Social Security Forms (WAh,‘He2) 9 2.5 2.5 13 21 11 Data for Electronic Equipaent- To be used later on Reports 10 21 17.5 6 9.5 S Reversing mtries 11 17.5 7. 5 10.5 7 IRS Entries for Direct and - Indirect Costs 12 12 13.5 10.5 7 1h.5 Entries for the Purchase of Materials 13 8 13.5 6 12.5 18 Insurance Forms 1h 5 10.5 lb 16 18 Entries to Record Haste & Scraplhaterials 15 17.5 2O 19 h 7 Supplies Inventories 16 8 10.5 l9 17 11 Entries to Adjust Inventory Cards 17 12 13. 5 15 .5 12 .5 20 Entries for the Return of Materials to Stores 18 17.5 17.5 17 12.5 9 Entries to Record Ibfective Work 19 17.5 20 21 12.5 11 Entries for the Issuance of Materials 20 20 20 19 9.5 ll..5 Tax valuation Sheets 21 15 16 15.5 19 21 215 APPENDIX P RECORDING OR POSTING ACTIVITIES RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PERFORMED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURER} IIJRABLE GCDDS Rank Order In _ By Size of Firm 7 Total 100- 250- 750 or To Record or Post (ll-‘9) 14.19 ISO-9912119 |7h9 Kore Adjusting Entries to Dodgers 1 1.5 2.5 2.5 1.5 1 Data to Ledgers from Original Set of Books or Electronic Data Run-off Sheets 2 5 5 1 3.5 2 Closing Entries to Ledgers 3.5 1.5 2.5 11.5 5.5 7 Reversing Entries 3.5 3.5 2.5 2.5 1.5 9 Purchase of Materials 5 3.5 2.5 h.5 7 7 Return of Materials to Stores 6 7.5 9 6.5 8.5 3 Open a Set of Books 7 6 6 6.5 8.5 h.5 Issuance of hterials 8.5 9 7.5 8 3.5 7 Haste 8: Scrap Material to has." 805 705 705 9 505 hos 216 APPENDIX Q DDRKING PAPERS WED AS RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PERFORMED BY TECHNICAL ACCOUNTANTS IN FIRMS HANUFACTURING HIRABLE GmDS Rank Order In I By Size of Firm Total 100- 250- 750 or Working Papers For (II-9) 14.9 50-99 21.9 719 More Trial Balance 1.5 3 1.5 1. 5 Financial Statements 1.5 1 3 3.5 3.5 1 Work in Process (Cost Sheets) 3 11.5 11.5 1.5 2 2 Tax Reports h 2 1.5 7.5 6 6.5 Depreciation on Assets 5.5 6 7 5 .5 5 1: Allocating Costs 5.5 8 7 5.5 1 11 Insurance mirations 7 7 11.5 7.5 7.5 6.5 Post-Closing Trial Balance 8 13.5 7 3.5 7.5 9 Consolidating Divisions or Branches 9 9 9 9 9 3 “ “Ll—4.- I I we __ y. a; - i 1 217 APPENDIX R NON-CLASSIFIED MAINTAINING, ANALYZING, OR PERFORMING ACTIVITIES RANKED IN TOTAL AND BY SIZE OF FIRM ACCORDING TO THE PROPORTION PERFCRMED BY TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING WRABLE GmDS Rank Order In T By Size of Firm Total 100- 250- 750 or Type Activity (N-hZ) 1-h9 50-99 2119 7149 More Verify Balances of Control Accounts with Subsidiary Ledger 1 8.5 1 1 1 1 Check Postings and Totals 2 5.5 2 5 2 2 Foot and Balance Ledger Accounts 3 3 3.5 7.5 5.5 3 Foot, Balance, and Total Columns in Special Journals in 3 3.5 2.5 23.5 5 Maintain Withholding Tax Records 5 1 - S 13 23.5 7.5 Check Creditor Invoices and Statements 6 3 9.5 S 23.5 11.5 Maintain Job Cost Sheets 7 5.5 16 9.5 12.5 7.5 Analyze Material Cost Variance 8 17 16 7.5 5.5 7-5 Analyze Labor Cost Variance 9 17 16 2.5 12.5 15.5 Analyze Indirect Costs 10 23.5 16 9.5 5.5 11.5 Caupare Costs with the Budget 11 23. 25.5 23.5 12.5 1: Rule and Balance Accounts 12 12 9.5 5 23.5 28.5 Analyze Sales 13.5 8.5 20.5 13 12.5 23.5 Maintain Insurance Records (expirations and preninns) 13.5 8.5 9.5 20.5 28 11.5 Handle Collection of Out- standing Debts 15.5 8.5 9.5 20.5 19 23.5 Analyze Distribution Costs 15.5 17 25.5 13 12.5 15.5 Analyze Administrative Costs 17 23.5 20.5 13 12.5 19 Maintain State Sales Tax Records 19 17 9.5 20.5 23.5 19 Analyze Overhead Cost Variance 19 23.5 20.5 13 5.5 28.5 Determine Bstinted Costs 19 12 30.5 20.5 12.5 15. Authorize Payment of Vouchers 21.5 17 9.5 17 23.5 28.5 Cmpare knurac‘mring and . Distributing Costs 21.5 23.5 30.5 17 12.5 15.5 Determine the Base for me- tribution of Service Depart- lent Costs to Production 23 30 37.5 17 3 23.5 218 APPENDIX R (continued) Rank Order In I By Size of Firm Total 100- 250- 750 or Type Activity (N412) 14:9 [SO-9912119 [7149 More Handle Promissory Notes 25 12 16 30.5 31. 5 19 Maintain Haste, aniline, A: Sirinkage Records 25 23.5 37.5 30.5 12.5 11.5 Maintain Departmental Records 26 36.5 30.5 30.5 12.5 7.5 Act as a Paying Cashier 27 17 9.5 25.5 36.5 23.5 Maintain Perpetual Inven- tories 28.5 17 25.5 23.5 19 28.5 Audit Internal Accounting Activities 28.5 36.5 25.5 30.5 19 23.5 Handle Sight Drafts with Bill of Ladings 3o 30 37.5 25.5 28 31.5 Design a Systen of Internal Control 31.5 30 30.5 30.5 37.5 Establish a Syste- of Inter- nal Check 31.5 30 25.5 30.5 31.5 37.5 mininate Reciprocal Accounts 31; 36.5 30.5 39.5 31.5 23.5 Handle Collateral Notes 3h 30 20.5 36.5 36.5 37.5 Use Red Ink to w Lines 3h A1 9.5 36.5 36.5 37.5 Handle Conditional Sales 36 36.5 30.5 36.5 31.5 31.5 Discount Notes 37 30 37.5 30.5 36.5 37.5 Handle Chattel Mortgages 38.5 30 25.5 39.5 141 37.5 Handle Time Drafts 38.5 36.5 37.5 30.5 36.5 37.5 Handle Trade Acceptance 110 36.5 37.5 36.5 36.5 37.5 Handle Judperrt Notes 111.5 M 37.5 ILLS All. 37.5 Handle Bailnent Leases Al. Al 37.5 ALS 1.1 37.5 219 MIX S MATHEMATICAL OCHPUTATION ACTIVITIES RANKED IN TOTAL AND BY SIZE (F FIRM AmGIDING TO THE PROPORTION PERFORIED BI TECHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING Dam «DDS W BankOrder pBySizeoIFirn refill [1.” LSD-991100. ‘ 25’6- 750 or Mathentical oo-putations For 62.) 21.9 7A9 Hora F.I.C.A. Taxes 1 2 1 2.5 1.31.5 6.5 Vacation and Holiday Pay 2.5 2 8 11.: ALS 6.5 Data for Adjusting M2108 2.5 27 15 lb 11.5 1 Overtine Payroll 5 2 3.5 11. 55 10.5 State Una-ploynnt Taxes 5 6.5 3.5 7.5 111.5 13.5 Federal Uneaploynent Taxes 5 6.5 8 7.5 131.5 10.5 Payroll by Hour or Day Rate 7.5 6.5 3.5 , 2.5 55 16.5 Payroll Tine Cards 7.5 6.5 8 7.5 55 10.5 Percentages 9 17 20 26. 5 l6 2 Invoicing Custmers 10 11 15 2 .5 213.5 10.5 Inventories by Physical Count 11 27 20 11; 2.5 6.5 Payroll Job Tickets 13.5 11. 15 1A 3A.; 3.5 (bah mscounts 13.5 11; 12 7.5 213.5 16.5 Hort-en's Cupansation 13.5 6.5 8 2.5 55 30.5 Bonuses 13.5 11: 8 11: 131.5 13.5 Group Life Insurance Praia-s 17 11 3.5 21 55 21 Medical and Hospitalization Plan Presinss 17 6.5 11 21 55 21 Allocation of Costs to Job 17 11 211.5 114 8 21 Using Cost Standards 19 1114.5 68 7.5 2.5 3.5 Allocating Costs to Depart-ants 21.5 1313.5 1.6.5 36 2.5 16.5 Insurance Data 21.5 17 15 7.5 73 38.5 Perpetual Inventory Records 21.5 21 313 M 11.5 16.5 Straight Line Depreciation 21.5 27 20 30.5 8 38.5 Pension and Annuity Pay-ants 21: 27 15 30.5 31:35 25 Trade Discounts 26 17 31; 21 111.5 30.5 Determining Overabsorbed Overhead 26 “1.5 68 21 11.5 21 Uncollectible Accounts 26 21 h6.5 26.5 2h. 5 25 Payroll Shift Prelim 29 21 20 26.5 55 30.5 Detersining Unabsorbed , Overhead 29 hh.5 68 21 16 21 Inventories by Fife Method 29 27 20 52 16 25 lbtersining the Base for Dis- ributing Service Depart-exit Coststo Production 31.5 1:115 68 26.5 5.5 38.5 220 APPENDIX 5 (continued) ' Rafi: Drder In By Size of Firm _ Total 100- 250- 750 or Mathematical Computations For (N=82) 1-119 5099 2119 7119 More Inventories by Cost or Market Costing 31.5 58.5 311 30.5 2.5 116 lbpreciation by Declining Balance lhthod 33 33.5 211.5 36 211.5 30.5 Interest Receivable 311.5 21 211.5 1111 211.5 116 Obsolescence 311.5 1111.5 68 21 211.5 30.5 Cost Estimating 37 58.5 68 36 8 30.5 Allocating Costs to Divisions 37 1111.5 68 21 311.5 30.5 Interest Payable 37 21 311 36 311.5 116 Allocating Costs to Process 110 1111.5 311 36 211.5 38.5 Cost-Volume Relationships 110 58.5 68 1.111 5-5 33-5 Establishing Standards 110 1111.5 68 30.5 211.5 30.5 Foreign Exchange Equivalents 112.5 75.5 68 63.5 311.5 6.5 Inventories by Average Cost Method 112.5 58.5 68 36 11.5 38.5 Break-Even Analysis 1111 33.5 314 1111 16 71 Determining ill-lettur to Make or Buy an Item 115.5 33.5 116.5 52 311.5 116 Determining Replacannt Costs for Equip-sent 115.5 27 68 1111 311.5 116 Mark-Up of Prices 117.5 33.5 116. 5 52 111.5 116 Determining the Cost of Carrying Inventories 117.5 75.5 116.5 1111 211.5 116 Rent 119.5 27 311 1111 73 71 Determining Sale Price for Determining when to Purchase Inventories 53 1411-5 314 52 55 514-5 Determining Budget Variances 53 58.5 68 63.5 16 511.5 lurk-Donn of Prices 53 58.5 68 1111 311.5 ' 511.5 Determining Voluae Variances 53 58.5 116.5 63.5 211.5 511. Determining Best Method of Financing 53 1111.5 311 36 73 71 what Inventories to Purchase 56 33.5 311 63.5 55 71 Payroll by Per Unit or Piece 59 58.5 31.1 77 73 38.5 lbternining Nimber Ihys Inventory Needed 59 75.5 211.5 63.5 55 511.5 Determining How Much to Pur- chase (Ecmuic Order mantity) 59 58.5 311 52 55 71 Price-Level Adjustments 59 58.5 116.5 63.5 111.5 511.5 221 APPENDIX S (contimed) Rank Order In By Size of Firm Total 100- 250- 750 or Mathmatical Cauputations For (111-82) 1449 50-99 2119 7119 More Depreciation by Sun-0f-Digits Method 59 53-5 116.5 77 211.5 71 Determining Cost of By-Products 62.5 58.5 68 63.5 73 38.5 Intangibles 62.5 58.5 116.5 52 55 71 Determining Fixed Costs of Jaint ”me“ 6,805 7505 68 6305 1.11.5 514.5 Detersining Variable Costs of Joint Products 68.5 75.5 68 63.5 hl.5 5h.5 Payroll by Incentive Plans 67.5 58.5 311 77 73 71 Patent! 67.5 75.5 116.5 63.5 55 71 Depreciatim by Units of Production 67.5 58.5 68 77 55 51.1.5 Cash Dividends 67.5 75.5 h6.5 52 73 71 Inventories by Weighted Average Method 72 58.5 116.5 77 73 71 Organization Costs 72 58.5 68 63.5 73 71 Depletion 72 1111.5 68 77 73 71 Stock Dividends 72 58. 5 68 63.5 73 71 Division of Partnership Profits 72 58.5 68 77 73 511.5 Inventories by Lifo Method 77.5 75.5 68 63.5 73 71 Determining Sell-Variable Costs of Joint Products 77.5 75.5 68 77 55 71 Franchises 77.5 75.5 68 63.5 73 71 Annuities 77. 58.5 68 77 73 71 Tradasarks and Name 75.5 68 63.5 73 71 Goodwill ‘ 75 .5 68 77 73 71 field on Bonds 75.5 68 77 73 71 '1 ......... Nagging-manage”! «with C 13.....an 222 APPENDIX T SU'MMAR OF KENDALL‘S COEFFICIENT OF CONCORDANCE AND CHI-WARE ANALBIS DATA BI ACCOUNTING FUNCTION AS PERFORMED BY TMHNICAL ACCOUNTANTS IN FIRMS MANUFACTURING WRABLE GOODS Statistical Degrees Level Measurement of of Accounting Function W 12 Freedm Significance Making Financial Reports and Schedules .663 116.03 35 .001 Analyzing Financial Statements and Schedules .613 73.56 214 .ml rhintaining Ledgers .8011 60.30 15 .001 lhintaining Journals .7119 37.1.15 10 .001 Preparing and Initiating Rte .398 39.80 20 .01 Recording or Posting Data .1179 19.18 8 .02 Making and Using Working Papers .5611 22.56 8 .01 Non-Classified Maintaining, Analyzing, or Performing Activities .710 1611.00 111 .001 Doing Specific Mathematical Cusputations .628 2511.311 81 .001 W-Kondall's Coefficient of Concordance with correction factor for ties2 s 112' 1:2(N3-N) - x Zr t 2 - k(N-1)W S - an of Squares of observed deviations from the loan 1: - Number of sets of rankings (5 sizes of firms) N - Number of activities ranked 1' - Huber of observations in a group tied for a given rank 2' -Directs one to sum over all groups of ties within am one of the k rankings lused to test the null hvpothesis, "No significant difference exists between the rank order of the accounting activities in each selected function as perfumed by technical accountants in the various size of firn categories. 2Sidney Siegel. No tric Statistics for the Behavioral W. (New York: Mother-Hill Book Capany, Inc., 19 , p. 2311. 223 APPENDIXU A LIST BY FUNCTION OF HIRVEIH) ACCOUNTING ACTIVBIES NOT INCLUDE AS PART OF THE CRITEIA LIST FOR EVAHIATING POST-HIGH scaoor. TECHNICAL ACC GINTING PROGRAMS PCB FIRMS MANUFACTURING IIIRABLE GOODS IN THE TREE-COUNT! AREA FINANCIAL STATDIENTS, NEWS, AND SCHEIIIIES Branch.and Division.Statements Research and Development Budgets ANALISIS AND INTERPRETATION OF FINANCIAL STATWTS Sales to Asset Ratio Acid Test Ratio Book Value Per Share of Stock Per Cent Earnings to Total Assets Plant Assets to Long-term Liabilities Ratio Equity to Asset Ratio Dollar Earnings Per Share of Stock Dividends Per Share of Stock Per Cent Dividend field Liabilities to Capital Ratio MAINTAINING moms Insurance Register Stockholders Ledger Subscribers Ledger Branch ledger MAINTAINING JOURNALS Cash Payment Purchases Returns and Allowances Combined Cash MAKING AND USING WmKINC PMS FOR Post-Closing Trial. Balance Consolidating Divisions or Branches NON-CLASSIFED MAINTAINING, ANALYZING, (8 PERFORMING ACTIVITIES Handle Sight Drafts with Bill of Iadings Design a System of Internal Control Establish a System of Internal Check Eliminate Reciprocal Accounts Handle Collateral Notes Use Red Ink to Draw Lines Handle Conditional Sales Discount Notes 2211 APPENDIX U (continued) Handle Chattel Mortgages Handle Time n-afts Handle Trade Acceptances Handle Judgment Notes Handle Bailnent Leases MATHMATICAL C(MPUTATION ACTIVITIES Fat Foreign Ebcchange Equivalents Inventories by Average Cost Method Break-Even Analysis Determining Replacement Costs for Equipment Mark-Up of Prices Detemirnng the Cost of Carrying Inventories Rent Determining Sale Price for Eruipment Determining When to Purchase Inventories Determining Budget Variances Mark-Down of Prices Determining Volume Variances Determining Best Method of Financing What Inventories to Purchase Payroll by Per Unit or Piece Determining Number Days Inventory Needed lbtermining How Much to Purchase-Economic Order Quantity Price -Level Adjustments Depreciation by Sum-Of-nigits Method Determining Cost of By-Products intermining Fixed Costs of Joint Products Detemining Variable Costs of Joint Products Payroll by Incentive Plans Patents Depreciation by Units of Production Cash Dividends Inventories by Weighted Average Method Organization Costs Depletion Stock Dividends Division of Partnership Profits Inventories by Life Method Determining Semi-Variable Costs of Joint Products Franchises Annuities Capmehta Trademarks and Names Goodwill Yield on Bonds Mum: N” u".0 E“' ”3 MMQ T"2 HHIHIHIIH