Evolution of overhead accounting: Part I. Basic Principles in the treatment of manufacturing overhead, Part II. Designing the overhead structure; Basic Principles in the treatment of manufacturing overhead; Designing the overhead structure
Abstract
The call back to fundamentals is most certain to follow our excursions into "easier ways" in trying to deal with problems such as this one of overhead expense. It is now generally recognized that it is the most important of the three chief factors in cost accounting. Yet until comparatively recently, even with improved methods in accountancy, the overhead content in the cost of a commodity has been roughly estimated or guessed at. It is now also recognized that it is fundamental that all items of expense taken into consideration in our cost reckonings must be tied in or balanced with our general accounting. Increasing competition, refinements in machinery and production methods and greater intelligence used in management has brought to the front this problem of more accurately measuring overhead.