Authors

W. A. Musgrave

Document Type

Article

Publication Date

1923

Abstract

The real problems of cost accounting in the textile industry-arise in those mills making a variety of fancy fabrics. This article deals with the costing of the product of a fine fancy cotton mill only. The cotton manufacturing industry of the United States ranks with the largest and most important of American industries. Its production is divided into three classes, namely: coarse, medium and fine cotton goods. Very few, even of the larger mills, have a modern cost control system. One reason is that a large number of mill treasurers and managers have gained the impression that cost accounting requires a lot of red tape. Another reason is that the installation and maintenance requires a substantial sum of money and that the results obtained do not warrant the outlay. Consequently, many mills still cling tenaciously to the old-fashioned methods of accounting, under which there is an inventory at the beginning of the period and to which is added purchases and manufacturing costs. It is then necessary to take another inventory at the close of the period in order to determine the cost of sales and reveal the profits earned.

Relational Format

pamphlet

Series Title

Official Publications of the National Association of Cost Accountants, 1923 (Aug. 1), Vol. IVI, no. 22

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