A Third Method of Accounting 83 



the end of the year. A study of the markets 

 develops judgment as to values. 



The third method of keeping accounts, described 

 in the following pages, also requires good judg- 

 ment and a clear understanding of values and of 

 the business carried on. In this, as in the former 

 methods, an inventory should be taken both at 

 the beginning and the end of the year. Let it be 

 supposed that there is doubt as to the relative 

 profits of the wheat, oat and corn crops. The 

 previous account shows large profit in raising 

 wheat and loss in raising oats, and this is valua- 

 ble information, but it may not be convenient for 

 every one to keep as detailed accounts as are 

 shown by the second method, Chapters II and 

 III. So a modified method of accounting is 

 presented below. If the first method be adopted 

 there is no means of knowing the relative 

 profits of the different crops or undertakings. 

 This third method is an attempt to combine a 

 part of the two methods already given in a sim- 

 ple and fairly accurate way, the purpose being 

 to discover which of a few particular crops or 

 undertakings give best results. 



Let it be supposed that it is desirable to learn 

 the cost of producing a bushel of wheat, a bushel 

 of corn and a bushel of oats. First, establish a 

 fair wage for man and team, including use of 

 tools, which will be simpler than to make a 



