Abstract The chief importance among the factors giving rise to business statistics is modern large-scale business enterprise. The development of this form of enterprise has brought a separation of management from actual operations. This has been true not only for top general management but also for top departmental or technical management. As a result of the change, management has been compelled to develop a technique of relatively remote control. The essential feature of the new technique of remote control by which top management bridges the gap between itself and actual operations is the more effective use of records. As a result, accounts have become of much greater importance for management. But the new management has come to require also records of data outside the double-entry system. Management now finds itself with two different kinds of records on its hands: accounting records and statistical records. The managerial experimentation which has developed business statistics is like the operation of a military force in the field.
D. R. Scott (Sat,) studied this question.