Accounts, Their Construction And Interpretation, for Businessmen And Students of Affairs
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To quickly assess the difficulty of the text, read a short excerpt:
CHAPTER NINETEEN SOME GENERAL PRINCIPLES ILLUSTRATED IN FACTORY ACCOUNTING The characteristic of factory accounting as distinguished from the other sorts already discussed is that most of the cost is exact and can be directly connected with the product, though a considerable percentage — much lower than in transportation, however — is of a general sort and must be distributed to the different items of pro- duct on a somewhat arbitrary basis.
The first distinction between the different elements ...of cost in man- ufacturing should be between manufacturing cost and selling cost.
No relation exists between them. Either the manufacturing division or the selling division may be excellently managed and yet the busi- ness as a whole produce no profit. On the other hand, either division may be poorly managed and yet the business as a whole produce a good profit. Only when absolute distinction is made between them is it possible to place responsibility. Let us begin with the producing cost.
Producing cost for each article of product is commonly divided into three parts : first, material ; second, labor ; third, what is com- monly called "burden." Burden is the share of general expenses, such as salaries for superintendence, heat, power, insurance, taxes, etc., — expenses incurred not for a particular article but for the factory as a whole, so that each particular article gets the benefit.
What to read after Accounts, Their Construction And Interpretation, for Businessmen And Students of Affairs?
You can find similar books in the "Read Also" column, or choose other free books by Cole, William Morse, 1866- to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
CHAPTER NINETEEN SOME GENERAL PRINCIPLES ILLUSTRATED IN FACTORY ACCOUNTING The characteristic of factory accounting as distinguished from the other sorts already discussed is that most of the cost is exact and can be directly connected with the product, though a considerable percentage — much lower than in transportation, however — is of a general sort and must be distributed to the different items of pro- duct on a somewhat arbitrary basis.
The first distinction between the different elements ...of cost in man- ufacturing should be between manufacturing cost and selling cost.
No relation exists between them. Either the manufacturing division or the selling division may be excellently managed and yet the busi- ness as a whole produce no profit. On the other hand, either division may be poorly managed and yet the business as a whole produce a good profit. Only when absolute distinction is made between them is it possible to place responsibility. Let us begin with the producing cost.
Producing cost for each article of product is commonly divided into three parts : first, material ; second, labor ; third, what is com- monly called "burden." Burden is the share of general expenses, such as salaries for superintendence, heat, power, insurance, taxes, etc., — expenses incurred not for a particular article but for the factory as a whole, so that each particular article gets the benefit.
What to read after Accounts, Their Construction And Interpretation, for Businessmen And Students of Affairs?
You can find similar books in the "Read Also" column, or choose other free books by Cole, William Morse, 1866- to read onlineMoreLess
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