Mycelial pads of N. crassa grown for 48 hr in minimal medium were harvested, washed, and transferred to test media containing a variety of carbon and nitrogen sources. When some amino acids served as the sole carbon source, NAD-GDH was induced and the activity of NADP-GDH declined. Addition of sucrose depressed or prevented induction of NAD-GDH while NADP·GDH activity was maintained. Internal amino acid concentrations increased when mycelial pads were incubated in amino acids that induced NAD-GDH, but these accumulated amino acids were only oxidized in the absence of sucrose. The rate of amino acid accumulation decreased if sucrose was present in the media. A hypothesis is presented that the induction of NAD-GDH and the activity of NADP-GDH are a function of the ratio of amino acids to sucrose or sucrose metabolites or both. Urea was an excellent inducer of NAD-GDH in the presence or absence of sucrose, although the rate of induction was greater in the absence of sucrose. Incubation of mycelial pads in urea also led to extremely high concentrations of amino acids, thus supporting the ratio hypothesis. Mycelial pads incubated in media containing D-alanine accumulated the amino acid very efficiently, but metabolized it very poorly. Nevertheless, there was strong induction of NAD-GDH, indicating that amino acids per se were the compounds involved on one side of the balance. Addition of 58 mM sucrose to the test medium containing D·alanine prevented the induction of NAD-GDH but did not prevent the accumulation of alanine within the mycelium. Incubation of mycelial pads in media containing all combinations of 50 mM NH4Cl and 58 mM sucrose established that NH; enhanced the induction of NAD-GDH. NH; per se did not induce NAD-GDH.