Value or Cost.

Abstract Value has long been the central theme of economic philosophy. Value is a dual concept rather than a simple one. Value-in-use comes to be an expression of the direct utility present, and value-in-exchange comes to be an expression of the marginal utility. In accounting, "cost versus value" is, in fact, "value-in-use versus value-in-exchange." The former seems a natural material for accountants to treat, for the primary function of accounting is to record cost-price as it enters an enterprise and to trace cost-price through many intricate conversions until in the end it leaves the enterprise in one form or another. The latter seems an unnatural material for accounting because value-in-exchange is essentially subjective and very fleeting at best. It would seem, therefore, that accountants would have a direct responsibility for correctly disclosing value for use but very little responsibility for exhibiting an estimate of value for exchange. The early choice of the balance sheet as the main statement tends to place finance above operations, and finance, in turn, looks upon value-in-exchange as basic.