Old Wine Into New Bottles.

Abstract 1963 marks the 40th anniversary of the publication of economist John Maurice Clark's Studies in the Economics of Overhead Costs. This paper is a belated review of that important and significant volume. As far as, according to the author, this is the first review of this book by Clark to be given before an accounting audience and none has appeared in an accounting journal. Two of the sister arts, economics and statistics, recognized the accounting significance of this work. Distinguished accountants who were later to become presidents of the American Accounting Association prepared the reviews of it in the journals of their professional organizations. Clark makes the point repeatedly that acquisition of knowledge and technical skills by workmen and researchers is an overhead cost to the firm. He hints that these costs should be capitalized for they give rise to benefits of an enduring sort. Much of this paper has been taken up with criticism of a relatively minor sort of Clark's views and of the difficulty of implementing some of his notions. Such comments should not be allowed to mar the major sentiment the author hopes to express.