Document Type
Article
Publication Date
1921
Abstract
Adopted November 11th, 1920. The basic costs to be ascertained were warehouse, direct shipment and indirect shipment. The total expense of doing business includes all three of these factors. The Committee discussed at length the advisability of following the plan of some cost systems which start with the invoiced unit cost, and then load this with the burden of expense incurred during transit through the various processes involved in filling an order. In following such a procedure, overhead is naturally assessed on a basis of price per pound or some similar unit, but we found the units in a paper warehouse differed so in character that it would be impracticable to follow such a plan. For instance, it developed that some paper warehouses handled not only the various kinds of paper, but ice cream cones, butter dishes, clothes lines, matches, hammocks, automobile tires, etc. For this reason, and also because the majority of houses kept no record of sales and purchases on a tonnage basis, it was found impracticable to operate the system in its initial stages on a price per pound basis. Therefore the only easy, workable method was to operate on a percentage of sales, and the system was devised along this line. Original item in Box no. 0409
Relational Format
pamphlet
Recommended Citation
National Paper Trade Association. Cost Accounting Committee; Cree, T. K.; Schoenbucker, N. A.; and Stevenson, W. B., "Standard classification of expense" (1921). Publications of Accounting Associations, Societies, and Institutes. 17.
https://egrove.olemiss.edu/acct_inst/17