Abstract The article reports that using an input-output or output-input framework for solving cost accounting problems has several advantages: It provides a general framework which can be applied to a wide variety of cost accounting problems, it focuses on the basic accounting relationships underlying a problem situation, it provides an application of mathematics to accounting in which matrix algebra techniques can be applied to conventional accounting problems, it embodies a computational approach which can be easily implemented through computer programs. Although some instructors may wish to emphasize the mathematical formulation of an input-output problem, other instructors may simply wish to provide a prepared computer program to students to perform the extensive arithmetic involved in solving complex cost accounting problems. With only a modest nonmathematical introduction as to the conventions involved in placing data in a coefficient or transaction matrix for financial planning and cost allocation problems, students would be enabled to use such a program to solve a wider variety of problems, thus enabling them to concentrate on the accounting aspects of a larger number of problems and to relegate to the computer the time-consuming computational aspects.
Werner G. Frank (Mon,) studied this question.