Document Type
Article
Publication Date
1921
Abstract
The cost system described in this article, like many others, has three chief purposes: to arrive at the monthly cost of sales, to compile statistics for use in predetermining costs, and to furnish a basis for production control. Each one of these purposes will be discussed in turn. The product of a cable mill is usually of such a nature that it is inadvisable to manufacture for stock, because all purchase orders are received accompanied by definite specifications. Accounts are opened for all orders received in the "cable mill work in process ledger." The ledger sheets provide the following information: name and number of order; full description of order as called for by the specification; date and quantity shipped; metal prices applying to the order; summary of cost and sales values and the profit or loss in total and per foot or per pound; rolling and drawing charges; materials, fourteen kinds, each being kept in a separate account; labor operations, fourteen different operations; burden shop, general and fixed charges and administration and selling expenses, each applied on its own basis; and abnormal charges incurred on an order. The ledger sheet is arranged in sets of columns, each set consisting of two columns, one for the weights of material, man-hours or machine hours, and the other for the values of material, man-hours or machine-hours. To each set of columns are posted the results of the month's operations as shown by tabulated reports explained later in this article. Several of the above items shown on ledger sheets will be explained in detail.
Relational Format
pamphlet
Series Title
Official Publications of the National Association of Cost Accountants, 1921 (Aug.), Vol. II, no. 19
Recommended Citation
Benke, Fred F., "Cost system for an electric cable plant" (1921). Publications of Accounting Associations, Societies, and Institutes. 105.
https://egrove.olemiss.edu/acct_inst/105