INTERPRETATION OF COST ACCOUNTS 359 



tions properly may cause the careful farmer to hold his 

 corn in some years and to sell early in other years. It is 

 noticed that in the year ended Feb. 28, 1917, more corn 

 was carried over than in either of the other two years 

 shown in Illustration 64. This seems to indicate that a 

 rise in price was expected during the opening months of 

 the next fiscal year. 



Result (13), cost of corn sold and used, does not mean 

 much in a comparative way until it is used in the Summary 

 as (16) in connection with the income shown in result 

 (15) of the Summary. 



A comparison of the income items (14) indicates the 

 policy of the farmer to some extent. In one year he does 

 not sell any, but in the next year he sells much. The total 

 income as shown in the Summary of Illustration 64, can 

 hardly be said to reflect the ability of the farmer except 

 as it is reflected through the cost of production per bushel. 

 This is true because all income from corn is figured at 

 market price, and the average farmer does not have much 

 to do with the fixing of the market price. It should be 

 considered that the two years in the Illustration are years 

 of unusually high prices for farm products. 



However, it might be said that total income does reflect 

 the farmer's ability in one respect. The farmer who stud- 

 ies national conditions and can foresee a high price for 

 corn, will put in a greater acreage of corn and smaller 

 acreage of some other products. Also, he may be able to 

 sell at the proper time. 



Result (17), "net gain on corn for the year," is inter- 

 esting as a starting point, if one wishes to determine poli- 

 cies for succeeding years, or to examine the causes of the 

 results of the present year. 



Result (18), "net gain per acre planted," is a figure 

 that does not reflect the ability of the farmer primarily. 

 This result, together with (17), is a very good one to study 



