If the above plan is followed, a fixed cost price is obtainable, which should remain in force until the books are closed, when it can be verified or changed if necessary. The realized profits depend on this price; and, especially if the profits are determined by averaging all outstanding contracts, it is very advantageous to have as few changes as possible in the conditions.

Accounting for subdivision properties is a comparatively recent necessity, and few text-books even touch on it. It has been suggested recently by one eminent authority that the cost price should be recalculated each month; but it is believed that the plan here suggested is more scientific and more convenient. It would add a considerable burden to the bookkeeper of a concern handling constantly between twenty and thirty different subdivisions, if he had to calculate costs afresh each month. In practice it is found best to keep the cost price constant until the end of the fiscal period. At that time the improvement reserve account may be either increased or wiped out, according to the circum-stances.