Document Type
Article
Publication Date
1921
Abstract
Cost Accounting in the chemical industry presents many interesting phases of both process costs and production order costs. This article, however, deals chiefly with process costs. In some classes of chemical plants the process cost system is the prevailing type of cost system; in others, the production order type. Since some of the detailed work in the cost department of any business is more or less similar, such work is not described in this article but only the principal features of the cost accounts in a chemical concern. In a chemical plant the cost accountant should furnish such principal facts as the following: The cost of converting the raw materials, the manufacturing overhead, the manufacturing cost in bulk, the factory cost of the product packed or otherwise prepared for shipment, and the selling cost. Such problems as by-products, repairs, depreciation, obsolescence, overhead and its distribution, and containers should also be considered. In a large chemical concern the work of the cost accounting department may be subdivided advantageously between the factory and general offices, the former having to do only with quantities of materials, supplies, productions, shipments, and inventories, and in the value of labor; and the latter having to do with the values of the quantities reported by the factory office, and the summarized labor charges. This requires the perfection of a system of prompt inter-office reports. For smaller companies, this subdivision may be unnecessary.
Relational Format
pamphlet
Series Title
Official Publications of the National Association of Cost Accountants, 1921 (Dec. 1), Vol. III, no. 6
Recommended Citation
Rosen, C. B. E., "Some phases of cost accounting in the chemical industry" (1921). Publications of Accounting Associations, Societies, and Institutes. 114.
https://egrove.olemiss.edu/acct_inst/114