Hazard's paper and which will be of especial interest in connection with what has been said above: In attempting to prepare a budget for any manufacturing business it is necessary to estimate, first of all, the quantities of finished product which can probably be sold, since it is evidently not wise to manufacture largely in excess of probable demand, and certainly foolish to fall short of stock with which to meet inquiries. To begin a budget system for a going business which has Never had one, it is to be assumed that certain statistics can be made available. On examining the volume of sales for, say, five annual periods, it is easy to determine the rate of increase shown, and for the budget purpose it is fair to assume that an average rate so found will be maintained in the future, barring unforeseen commercial and industrial complications. While the individual records of any business thus form a fairly safe guide for its future conduct, a broader view of the entire industry is required, especially in those lines where the national or world consumption is rapidly increasing and in those industries which require a considerable time to prepare new plant for increased production. In an industry which shows for a term of, say, five years an average annual increase in the national consumption of 10%, it is necessary for each maker to increase his product in each year by 10% over thi previous year if he would hold his proportion of the entire trade* Such increase means that in seven years each maker must double his output....

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