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N SSOC Atiuf He Tecl}Nical Side of ACOF --- -- 'O M T -Cur-Erifs- 109 L R Ir%Y R a U R a O T E S 113

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N SSOC Atiuf He Tecl}Nical Side of ACOF --- -- 'O M T -Cur-Erifs- 109 L R Ir%Y R a U R a O T E S 113 N.AOCOAG BULLETIN o,� September s(�°�p prA�� Two Sections 1951 � ;� IIL' Section 2 0 In the News A Message from President Papenfoth 99 Four Regional Conferences Planned for '51-52 101 More than 200 Members in Armed Forces 103 Board Votes Research, Education Survey 105 Called to the Colors 104 In the Public Eye 106 Congratulations To 108 N SSOC ATIUf he Tecl}nical Side OF ACOF --- -- 'O m t -Cur-erifs- 109 L R Ir%y r A u r A o t e s 113 Stevenson Trophy Standings 112 N.A.C.A. BULLETIN Volume XXXIII, Numbcr 0 Published by NATIONAL ASSOCIATION OF COST ACCOUNTANTS SOS PARK AVE., NEW YORK 22, N. Y. NATIONAL OFFICERS President HERMAN A. PAPENFOTH Vice Presidents L. C. BOLLINGER GEORGE E. HALLETT ARTHUR C. CHUBBUCK JOHN B. INGLIS ROBERT E. DERBY WILLIAM E. JACKMAN FRANCIS H. HALL I. WAYNE KELLER Treasurer PHILIP J. WARNER HEADQUARTERS' STAFF ARTHUR B. GUNNARSON Secretary RAYMOND P. MARPLE JOHN L. DORAN Assistant Secretary — Technical Service Assistant Secretary — Chapter Relations and Conferences WALTER B. McFARLAND JAMES A. THOMPSON Supervisor of Research— Member Service Office Manager — Membership Relations DONALD G. KEEN GEORGE F. WYMAN Supervisor of Publicity and Editor of N.A.C.A. Bulletin Public Relations A Message from President Papenfoth of broad financial and accounting objec- tives. During this period, and as we look ahead, the industrial accountant is faced with meeting the questions and problems arising from the necessary adjustments due to a continued defense economy, fed- eral controls and inflation. This presents an opportunity to us, and by recognizing the responsibilities in relation to these matters the industrial accountant is in a position to serve and be a part of man- agement in the control of expenses, prof- its and cost reduction. With increasing government expendi- tures, necessary for defense and war pur- Herman A. Papenfath poses, and with the resultant increase in federal taxes, there is need for greater HE YEAR AHEAD is another challeng- efficiency, cost control and cost reduction, T ing one for the industrial accountant which become of paramount importance in planning adequately to serve manage- as inflation continues its upward trend. ment, industry and the country during a By application of everyday practices of period when a broad outlook and maxi- cost predetermination and control, the mum flexibility are essential in order to cost accountant can contribute greatly to- meet the ever - changing conditions in our ward minimizing some of the unfavorable economy. influences. By this time there should be little room Inflation is an insidious enemy of our for question regarding the position of the economy and can be almost as successful industrial accountant in business—his as war itself in wrecking our American place in management —and his responsi- system and institutions. Increased produc- ility for service to the operating divi- tion and improved efficiency can serve sions of the business. An adequate or- best in offsetting the undermining effects ganization plan and chart establishes the of inflation. Under federal controls now basis for understanding these relation- in effect an effort is being made to hold ships, and careful financial planning pro- the line on costs, prices and profits. It is vides the method for the accomplishment only by the wide and consistent applica- SEPTEMBER, 1951 99 tion of the principles of cost and price tors at the chapter level, which forms the control to all parts of all industry that the backbone of the organization. forces of inflation can be held in line or The well- organized headquarters staff, directed in a manner to delay or mini- which has grown to keep pace with the mize its effects. Here again the account- Association's needs, could do little with- ant can serve management and industry out the collective efforts of all chapters; because of his intimate knowledge of but by the administration and coordina- costs and price relationships. tion through national headquarters, the One of the greatest challenges before N. A. C. A. is able to function smoothly us is the full and efficient utilization of for the over -all benefit of the entire mem- facilities, manpower, and materials in or- bership. der to obtain maximum production at low It is a continuing responsibility of your cost and with a minimum of inventory in- National Officers and Board of Directors vestment. Accomplishment of these ob- to be constantly aware of the value of jectives will produce maximum results supplying information on matters of cur- with the available material and labor sup- rent interest, and through educational ply at a time when production demands programs to offer opportunity for im- are greatest, in order to meet the com- provement and advancement in knowl- bined requirements for government de- edge to its members. fense needs and consumer requirements. An activity which has always been The N. A. C. A., through its member- given a great deal of attention is the re- ship and its services has, from its incep- search program, which will be given con- tion, kept pace with current conditions tinuing emphasis during this year. and problems to meet industry's need in A Special Projects Committee was ap- the financial and accounting field. As this pointed last year to investigate and rec- organization has grown, it has broadened ommend to the National Board activities its scope by the steady increase in the of a research and educational nature number of chapter.- throughout the coun- which might be undertaken to insure con- try, with a membership which should ex- tinuing and long -range benefits to the ceed 30,000 by the end of the year. membership in these areas. In this growth the N. A. C. A. has sac- During the year ahead the National rificed nothing in character and service Officers, and others who comprise the because of its size, but has given others Executive Committee, as well as the chai an opportunity to participate in all of the men of the various standing committees, advantages and benefits offered by N. A. will devote themselves to the direction of C. A. membership. This is made possible N. A. C. A. affairs, and by visitations to by the responsibility and opportunity for chapters and regional cost conferences initiative given to the officers and direc- (Continued on page 105) 100 N.A.C.A. BULLETIN Four Regional Conferences Planned for '51 -52 Later in the month Twin Cities Chapter will sponsor the Northwest Regional Cost Conference, to be held at the Radisson Hotel in Minneapolis, October 19 -20 (Friday and Saturday). Twelve chapters in sections of Minnesota, Wisconsin, Iowa, Illinois and Nebraska, will send their representatives to the meeting. Indianapolis Chapter will be host to eleven chapters from Indiana, Illinois, Photo Providence Journal- Bulletin Ohio, Missouri and Kentucky at the first Air view of Providence spring conference, scheduled for the Clay- pool Hotel in Indianapolis, on April 4 A.C.A.'S REGIONAL COST CONFER- and 5. In addition to the foregoing, a N 1951 -52 ENCE program for gets fourth regional conference is being under way next month, with two con- planned for Atlanta, Ga., April 18 -19. ferences scheduled during October and Fourteen southern chapters will partici- two planned for next April. Program pate, representing the states of Georgia, themes are being geared this year for Alabama, North and South Carolina, consideration of all the major problems Tennessee, Virginia, Mississippi and Lou- facing the accountant in industry today, isiana. with special emphasis on his role in the current economy. A total of fifty-six (A listing of chapters participating in N.A.C.A. chapters are already scheduled the regional conference program may be to participate in the regional meetings, found on the back cover.) The Thirty- with upwards of 1,500 members expected third Annual International Cost Con- to attend. ference will be held at the Waldorf - The New England Regional Cost Con- Astoria, New York City, from June 15- ference is first on the schedule, to be held at the Sheraton - Biltmore Hotel, in Provi- 18. dence, R. I., October 12 -13 (Friday and Saturday). In addition to the sponsoring New England Program chapter, Providence, fourteen New Eng- The New England Regional Cost Con- land chapters, representing the states of ference will feature the following topics, Massachusetts, Connecticut, Maine and under the general theme of "The Indus- New Hampshire, will participate in the trial Accountant's Part in a Mobilization conclave. Economy:" SEPTEMBER. 1951 101 The Assignment of Costs to Govern- ment Contracts and Sub-Contracts E. E. MCCONNELL, Comptroller, Norton Company, Worcester, Mass. The Accounting Problems of Renegoti- ation LESLIE MILLS, PARTNER, Price, Water- house & Co. Minneapolis skyline seen from Loring Lake. Competitive Costs in New England Industry troller, Goodyear Tire & Rubber Co., ROYAL D. LITTLE, President, Textron, Akron, Ohio Inc., Providence, R. I. ACCOUNTING REQUIREMENTS The General Competitive Situation in New England FOR GOVERNMENT CONTRACTS ALFRED C. NEAL, First Vice President, Assignment of Costs to Government Federal Reserve Bank of Boston, Bos- Contracts ton, Mass. PAUL H. WERNICKE, Comptroller, Min- Production Cost Analysis neapolis- Honeywell Regulator Co., STANLEY Z. BRONNER, Assistant Treas- Minneapolis, Minn. urer, Bridgeport Brass Co., Bridgeport, Cost Problems Arising from Price Conn. Stabilization Distribution Cost Analysis J. S. GUSTAFSON, Manager, Special Serv- JOHN A. BECKETT, Assistant Professor, ices Department, Touche, Niven, Bailey Massachusetts Institute of Technology, & Smart, Chicago Cambridge, Mass. Renegotiation HAROLD W. SCOTT, Partner, Haskins & Northwest Program Sells, Detroit Keyed to the theme of "Cost Account- Accounting Requirements for Govern- ing in a Defense Economy," the North- ment Contracts — Discussion Panel west Regional Cost Conference will fea- ture discussion of the following: The technical programs for the two spring conferences in Indianapolis and COST ANALYSIS FOR Atlanta, will place emphasis on current MANAGEMENT GUIDANCE topics similar to the above.
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