Document Type

Article

Publication Date

1908

Abstract

The past decade has witnessed important advances in many lines but possibly none has shown more rapid evolution than the science of Cost Accounting. Proprietors and managers have long wanted exact knowledge of the cost of their output and realized the advantage of such information, but even to-day a large majority will admit that they do not know their costs. Many self-styled expert cost accountants have played on this condition of affairs, reaped a harvest for themselves and their employers, and left their clients in a worse state of confusion, than they were before, on the subject of cost, therefore, in order to appreciate a decided advance in the method of locating direct labor, a knowledge of why the cost accountant wants this information so accurately and what he can do with it, is desirable. Cost is divided into the three classes, material, labor and expense. Thanks to the storekeeper system, with card indexes and loose leaf books, the problem of taking care of the cost of material is well advanced and easily understood. Material is tangible and "stays put" while labor cost is of a more elusive nature.

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