tirely. These items, in short, concern the business too vitally to be left subject to chance.

"In the game of business as in the game on the diamond," declares John T. Wolff, of the L. Wolff Manufacturing Company, with much truth, "it is the man who keeps score on re

(Adapted from Nicholson's "Cost Accounting-Theory and Practice" by permission of the publishers.)

sults who follows most closely the progress and the profits of his work."

The problem of statistical control is (a) how to secure the needed data most easily and quickly, and (b) how to utilize it with effectiveness in the management of a business.

The Securing of Statistical Data

The usual basis of control within a business consists of the original entries made by clerks and workmen upon the various forms with which they have been provided. In consequence, information concerning all phases of its activity continually collects, as indicated by the diagram of Figure 24.

This diagram sets forth with fair accuracy a fact increasingly characteristic of the large-scale enterprise—that its wage earners, clerks, salesmen, correspondents, executives, etc., do much recording of their respective accomplishments. While accountants often apply the term "unproductive" to those engaged strictly in recording, and executives oftentimes assume this term to be literally true, in the case of all record making such is not really the case; an effective control is produced.

"A wise direction is of more avail than overwhelming numbers; sound strategy than the most perfect organization," rightly declared Henry L. Gantt; "a wise policy is of more avail than a large plant, good management than perfect equipment."

Adequate Control at Reduced Cost

The value, indeed the necessity of control and the part which records play in this control convince most business men that accounting cannot be safely ignored. Nevertheless there are organizations so completely bound in "red tape" that the energies of this staff, turned card-wise, exhibit a sorry showing result-wise. Control can be purchased at too high a price. The problem here faced is much the same as encountered in other phases of the business-how with a minimum outlay for recording to secure maximum results in control.

The following, while they do not constitute an inclusive list, indicate methods that work out well in practice.

1. Standardized forms.

2. Essential data.

3. Samples.

4. Up-to-date information.

5. Summarized reports.

6. Statistical analysis.

1. Standardized Forms

The proper allotment of space in the planning of a unit record form reduces considerably the labor in making the original entries. (See Figure 25.) The setting aside of specific space for specific facts secures increased ease in the recording itself, with decreased liability of omitting pertinent data.

Data which controls the
filing

Data for sub-classification. Summaries and digests for quick reference.

BODY OF THE REPORT: This area to be more or less definitely broken up into appropriate rectangular areas which, as blanks, will remind the reporter of each element required in his report, and which, as records, will ensure speed in the use of the form, by providing a uniform location for each class of information.

RESERVE SPACE: For suggestions, exceptional facts, matters difficult to classify above, or any pertinent additional data not planned for in the original layout.

Figure 25. General Layout of a Unit Record

(Reproduced by permission from Jones' “Administration of Industrial Enterprises.")

In addition to a standardized layout, it also increases the ease with which forms are filled out if the spaces between horizontal rulings agree in width with the regular typewriter spacings, and if these rulings are so arranged underneath each other as to require the least movement of the typewriter carriage right or left with each new line in order to follow the form's indentation. Further standardization can well simplify

the amount of writing required in recording the information, the ideal form in this respect being one in which figures or check words tell most of the story. Finally the use of similar records by different departments can be so arranged that a single record made with several carbon copies will suffice in place of the numerous isolated and vexatious reports so frequently found.

2. Essential Data

In the securing and use of data, the nature and operating conditions of the business are of primary importance. Brick making plants cannot without extensive modification take over a department store's accounting system, nor can metal working establishments use with satisfaction a system prescribed for steam railways. Transactions in the case of any given business should be recorded according to a system devised for it, since only in this way can the collection of much useless information be eliminated while at the same time all essential statistics are secured.

In case of doubt it is well to record rather more than less information, the extra cost being regarded in the nature of insurance. At the same time a more careful mapping out in advance of those essential factors concerning which information is wanted would save much useless recording and in the experience of most organizations would pay for its trouble manifold.

3. Samples

Certain activities of a business, such as purchasing, selling or check drawing, must in every single instance be recorded. In other cases, however, complete information concerning every item is not always required for purposes of control. The business man usually decides from the showing of a limited number of samples what can be expected of an entire consignment of tin containers or lead pencils or bolts of cloth.