Assembling And Recording Costs
Assembling And Recording Costs 1. Uses Of Costs.—it *will Be Evident That The Man Ner In Which Costs Are Recorded And The Detail With Which The Recording Is Carried Out Will Vary Greatly With The Enterprise, And With The Point Of View Of The Manager. In Some Simple Continuous Processes ...
Cost Of Labor Records 1
Cost Of Labor-records 1. Recording Time By Checkboard.—no Matter What Wage System Is In Use In The Factory, It Is Usually Desirable To Record The Time At Which Every Employe Enters And Leaves The Works. In Very Small Plants The Foreman Is Usually Depended Upon To Enforce Regularity, But The ...
Cost Of Labor Wage Systems
Cost Of Labor-wage Systems 1. Labor In General.—it Has Been Shown That The Material Entering Into A Given Article Can In Most In Stances Be Ascertained In Advance. Bills Of Material Can Be Made Out, Material Can Be Measured, Weighed Or Counted, And The Value Entering Into A Given Part ...
Depreciation
Depreciation • 1. General Theory.—in All Industrial Enterprises There Are Some Assets Which Are Fairly Stable In Char Acter And Which Either Do Not Change In Value, Or, If They Change, Do So Only By Slow Degrees. Thus, The Purchasing Power Of Cash May Increase Or Decrease But In Either ...
Distribution Of Administrative Expense Resume
Distribution Of Administrative Expense-resume 1. Distribution Of Administrative Expense.—ad Ministrative Expense And Selling Expense In Most Fac Tories, And Particularly In Small Factories, Are Treated As One Item, Under The Name Of General Expense, And Are Usually Distributed As A Percentage On Factory Cost. In Many Such Cases It Is ...
Distribution Of Factory Expense
Distribution Of Factory Expense 1. General.—from The Foregoing Discussion It Will Be Clear That While The Cost Of Direct Labor And Direct Material Can, In General, Be Allocated With A Fair De Gree Of Accuracy To The Jobs Into Which They Enter, The Problem Of Distributing The Factory Expense So ...
Expense Or Burden 1
Expense Or Burden 1. Character Of Expense.—it Was Shown In Chap Ter Ii That Many Items Of Labor And Material That Are Essential To The Operation Of The Enterprise Cannot Be Directly Connected With Any Particular Piece Of Prod Uct. An Examination Of Figure 2 (page 21), And Also Of ...
Identification Of Costs 1
Identification Of Costs 1. Classification Of Accounts.—from The Foregoing It Is Obvious That Cost Finding Is Concerned With Two Kinds Of Accounts. Those That Have To Do With The Actual Production Are Constantly Changing, A New Ac Count Being Opened With Every New Undertaking And Closed With Its Completion. On ...
Issuing And Evaluating Material
Issuing And Evaluating Material 1. Issuing Materials In General.—it Is A Cardinal Principle In Good Cost-finding, Systems That No Mate Rial Of Any Kind Should Be Issued From The Stores With Out A Requisition Which Indicates The Authority For The Transaction And The Account To Which The Material Is To ...
Other Features Of Expense
Other Features Of Expense Distribution 1. Variation Of Expense With Volume Of Work.—it Is A Fundamental Principle In All The Methods Of Dis Tributing Expense That Have Been Discussed, That The Total Manufacturing Expense Should Be Kept Con Stantly Distributed In The Costs As Fast As It Accrues. The Only ...
Predetermination Of
Predetermination Of Costs—materials And Labor 1. General.—the Functions Of A Cost System As A Means Of Finding And Recording Costs, And Also As A Basis Of Managerial Reports, Have Been Discussed In The Preceding Sections. It Remains To Consider The Third, And In Some Respects The Most Important, Use Of ...
Predetermination Of Costs Expense 1
Predetermination Of Costs-expense 1. Preparation Work Is Divisible Into Two Stages, Namely, Preparation And Actual Operation. Thus, It Will Be Noted That In Figure 28 (page 320) , The Time For Preparation, And The Time For Changing The Machine At The End Of The Operation, Are Planned As Separate Items. ...
Problems Of Cost Finding
Problems Of Cost Finding 1. Bookkeeping, Accounting And Cost Finding.—a Clear Conception Should Be Had Of The Relation Between Accounting, Bookkeeping And Cost Finding. Account Ing Is The Science Of Recording Transactions In Terms Of Money, Which Is The Measure Of All Commercial And Productive Performances. Where Properly Conceived It ...
Purchasing Material 1
Purchasing Material 1. General.—the First Step In The Production Of Any Article Is To Obtain The Necessary Materials. All In Dustrial Effort Is Concerned With The Transporting Of Physical Materials And Their Transformation Into Other Forms In Which They Are More Serviceable. Material In The Natural State Usually Possesses Potential ...
Statistical Records And Reports
Statistical Records And Reports 1. Reports In General.—it Was Noted In The Pre Ceding Chapters That The Three Principal Uses Of A Cost System Are To Show The Actual Cost Of Operations, To Form The Basis Of Managerial Reports, And To Assist In Predicting Future Performances. The First Item Has ...
Storing Material 1
Storing Material 1. Storeroom Methods.—a Good Cost System Is Im Possible Without A Good Storeroom And Good Storeroom Methods. Such A Storeroom Will Have A Place For Everything, And Everything Will Be In Its Place. All Stores Will Be Guarded Against Theft Or Unauthorized Use As Carefully As The Cashier ...
The Importance Of Cost
The Importance Of Cost Finding 1. Few Men Understand Cost Finding.—no Part Of Modern Industrial Organization Is Of Greater Importance Than That Of Cost Accounting. At The Same Time There Is Perhaps No Part Regarding Which So Little Is Generally Known. In The Great Majority Of Industrial Establish Ments The ...