Abstract The article presents a comment on the article related to matrix theory and cost allocation by professor Neil Churchill that appeared in the October 1964 issue of the journal "The Accounting Review." Churchill's article provided an expanded version of the cost allocation model and then suggested other applications of linear algebra to cost accounting analysis. This comment will be directed at the Williams-Griffin model. As the article explained, the techniques of linear analysis with a helping hand from computers make the solution of reciprocally related systems quite simple in theory. This phrase, in theory, suggests two lines of thought, neither of which is to be construed as a basic criticism of the Williams-Griffin-Churchill material. The first, very briefly, is that what is in theory so simple still presents problems in practice. A different Net Services model predicates its approach on the assumption that service departments exist only to fulfill needs of operating departments and that their costs to these operating departments can only be determined after they have been charged by other services and credited for work done for other services.
Rene Pierre Manes (Thu,) studied this question.