Authors

E. D. Bistline

Document Type

Article

Publication Date

1921

Abstract

Cost accounting for public utilities is much broader in its scope and more intricate than cost accounting for a manufacturing concern, in that public utilities sell service instead of a manufactured product, and in rendering this service are regulated, or, in a sense, governed by Federal and state regulations imposed upon them. These regulations often limit and restrict the utility from collecting a fair return for the service rendered. In many instances utilities do not have an adequate system of accounting installed to show the true cost of rendering service, and it is difficult for them to defend what they consider fair rates before the Commission under whose jurisdiction they operate. When accounting systems do not reflect the true separate capital and operating costs, it becomes necessary to re-write many of the book accounts and to appraise the property in order to determine the cost or value of the property and cost of operations for rate making purposes. This article will be confined specifically to three classes of utilities, to wit: (a) Electric Utilities, (b) Water Utilities, (c) Railroad Utilities.

Relational Format

pamphlet

Series Title

Official Publications of the National Association of Cost Accountants, 1921 (March), Vol. II, no. 9

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