Principles of Cost Address By Mr Jw Mccall Gibosn City Illinois Delivered
Principles of Cost Address By Mr Jw Mccall Gibosn City Illinois Delivered
J W Mcall
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-s- 20. 000 doz. = 13^c. Per doz. Sftd. Peas 40*" " = 4, 000, -*- 40, 000 " = lOc. " " Pumpkin 9*" " = 900, + 20, 000 " = 4^c. " Tomatoes 16*" " = 1, 600, -*- 20, 000 " = 8c. " " Hominy 8*" " = 800, * 16, 000 " = 6c. " " The amounts thus determined, plus the prime cost (material and direct labor), make what is called "factory cost, " and when the selling cost is added, we have " the cost to make and sell/' to which we must add our desired profit to arrive at our selling price. We will take the ...different accounts of " burden " and treat them separately. Salaries. To this account should be charged the salaries of all the executive officers, the superintendent, shipping clerk or any person or persons on salary whose attention is spread over the various lines. 16 Interest. This item requires no special comment. Insurance. To include insurance of all kinds, such as fire, tor- nado, credit or accident. Taxes. Here we have another item that is self-explanatory, and might be charged in the sundry-expense account rather than to open a special account for taxes, as the account would usually have only one or two entries a year, and it is hardly worth while to give this item an account to itself.
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