The cost price is discussed in Chapters X and XI. This price, however, is not necessarily uniform throughout an entire tract. Owing to their situation, some parts sell for a higher price. Sometimes one concern may sell out a division for another company, transferring outstanding contracts at their face value or at some figure based thereon. There will be no profit from these contracts to the buyer, and, in the event of cancellation, the cost price of the lot will be the amount paid for the contract. Or again, it may be advantageous to redivide a subdivision on account of differences in the sizes of the lots, the quality of the soil, and other similar variations.

These instances show that causes other than improvements may produce a variety of cost prices for the lots in one subdivision. In a case of this kind it is well to have different "series" of accounts for the subdivision affected, in order to keep together lots having the same cost price. The reason for this will be apparent when we come to the calculation of earned profits.