The accountant's report would, of course, be filed carefully for future reference purposes if reference is ever necessary, but for the purposes of the executive the curve cards with the figures they contain are sufficient. Not only is the information for any subject shown on the cards as a curve over a long period of time, but the actual figures of the accountant's report are visible in such manner that they may be found instantly and quoted directly from the curve cards without having to refer back month by month to the original figures in the accountant's report.

The manager or chief executive of any business using curves in order to keep in close touch with all departments will find that he needs a liberal education in logic to enable him to draw the correct conclusions quickly from the large number of facts available. There

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are certain general principles which are gradually being recognized, and which within the next few years will doubtless be well enough known to classify and make available for the executive's use. At present, however, each executive must work out for himself his own means of recording data and of determining policies in operating his business. An example showing some of the difficulties involved in correct interpretation is one concerning overhead-expense ratios. Some managers consider the ratio of indirect expenses to the direct labor in any department of a manufacturing business as an infallible barometer by which each department of the business can be run. They little realize the absurdity of paying too much attention to overhead-expense ratios and the danger to the business of using overhead-expense ratios as a yard-stick by which to measure accomplishment. In this particular case, that of a large manufacturing plant, a new department manager changed the manufacturing methods so radically that he was able to produce an increased output with less than half the former payroll for direct labor.