A SUEVEY OF TYPICAL COOPEEATTVE STORES. 17 



Tabue ^'I. — Showing business practice, accounting, and auditing. 



Question. 



Yes. 



No. 



Month- 

 ly. 



Quar- 

 terly. 



Semian- 

 nually. 



Annu- 

 ally. 



Remarks. 



Satisfactory system 



20 



36 



9 



42 

 12 

 10 

 10 



40 



34 



21 

 17 



8 



9 

 5 

 28 

 3 

 27 

 32 

 34 



9 



8 

 22 

 26 

 27 











15 fair. 



Double entrv 













Total cash deposited daily 







.-.--. 









Sales si ips used 













Cash coupons used , 















BiJliiig ledger used 













Cost accounts kept by depart- 

 ments. 

 Manager reports regularly 



Are audits made regularly 



By cornmittRfi nf mpmbpfs 













20 

 11 



1 

 2 



18 

 3 



9 

 10 



8 report both monthly 



and annually. 

 3 weekly; 3 bimonthly. 



By professional auditor 











Are members competent 



' 





1 





Cost per year 







1 



High, S300; low, S30; 



Cash register used 



39 

 20 

 25 

 24 

 29 

 10 

 17 



6 

 23 

 19 

 20 

 15 

 34 

 26 









average, S56. 



Customers account file 











Typewriter 







1 





Adding machine 







1 





Satisfactory filing equipment 



Overhead carrier 







1 









1 





Check protector 







j 











1 





One thing that impressed the investigator was the lack of uniform- 

 ity of systems, forms, and equipment. This lack made it very diffi- 

 cult to secure statistics which would give a comparative estimate of 

 the success of the stores. The investigation conducted by Harvard 

 University in its attempt to bring about standardization of accounts 

 and office methods disclosed the same lack in practically all other 

 retail stores. 



Among cooperative stores, a beginning in the right direction has 

 been made by two or three promoters who are attempting to install 

 uniform systems of accounting and auditing for the stores they 

 organize. An examination of the work of these promoters, however, 

 tends to show that the good they are accomplishing is largely offset 

 by the fact that they have started many stores for which there was 

 not sufficient demand in the locality, and which were therefore 

 doomed to failure from the start. Moreover, they have frequently 

 advised an association to purchase an old^ and sometimes failing 

 business, and in many of these instances the cooperative association 

 found itself in possession of a large stock of shopworn goods and a 

 tradition for inefficiency in the store which was hard to live down, 

 although it had been paid for as " good will." 



No less than 36 of the stores reported that their books were kept 

 by double entry ; but where it was possible to get at the facts, it was 

 found that the systems were very imperfect, and that in many cases 

 it would have been difficult to secure a trial balance from the records. 

 It is probable, however, that the fundamental weakness is in the 

 bdokkeepers rather than in the systems of accounting. This is shown 

 in a number of instances where systems of accounting, installed by 

 experts, have become entirely disorganized through the inefficiency 



