Authors

John P. Hauch

Document Type

Article

Publication Date

1915

Abstract

Increase in competition and operating costs has made the question of production and sources of profit important in the development of business. That accounting statements present the book-value of resources and the amount of profit or loss is interesting but this does not give the management data that will show unprofitable or underdeveloped business. The weakness with some present brewery-systems is the failure to charge all items of department production at cost, the profit or loss statements being meaningless as a basis for future business development. With the rapid increase in bottling production, the knowledge of accurate departmental production and overhead costs is necessary for the proper development of this business. That it forms the basis for a selling price is valuable but an economic relation exists between the cost of brewing per barrel and increased output. A thorough knowledge of production costs is necessary to definitely establish this relation. The sample statements shown in the charts on the following pages provide for separate analytical costs for the brewery, keg department, bottling department and agencies. The figures purposely do not represent any actual operating conditions, being for illustration only.

Relational Format

article

Series Title

Western Brewer: and Journal of the Barley, Malt and Hop Trades, 1915 (August), Pp. 41-48

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