Document Type
Article
Publication Date
1935
Abstract
Therefore, it was decided by the Association to have a Manual prepared outlining a Uniform System for determining Manufacturing Costs, containing, as one of its major features, the Unit Method of calculating Manufacturing Overhead. The system presented herewith was designed after considerable study of the problems and requirements of pharmaceutical manufacturers. It is the result of six years work with approximately twenty pharmaceutical manufacturers, representing a good cross section of the average sized houses. The purpose of this Manual is to present a simple, uniform method of computing manufacturing costs and to act as a guide for those companies desiring to use such a method. Manufacturing Costs only are dealt with here, that is, the cost of producing products and placing them on the shelf in the finished stock room. Distribution Costs have not been studied sufficiently by the Association to produce results which can be included here. This Manual is written with the idea that it will be read and used by people who are thoroughly familiar with the processes involved in the manufacture of pharmaceuticals and by members of their organizations who have a working knowledge of accounting, even though they may not be expert cost accountants. It is prepared with the knowledge that most of the companies in the Association are average sized organizations, who really do not need an elaborate system of cost accounting. Therefore, a simple system is outlined herein requiring very little clerical labor for its maintenance. The adoption of the methods presented herein by the Association will give the membership reliable manufacturing cost data. In addition, it will make the comparison of costs at Association meetings a more valuable and helpful procedure.
Relational Format
pamphlet
Recommended Citation
American Pharmaceutical Manufacturers' Association, "Uniform system for determining manufacturing costs" (1935). Publications of Accounting Associations, Societies, and Institutes. 58.
https://egrove.olemiss.edu/acct_inst/58