Cyclopedia of Commerce, Accountancy, Business Administration Volume 2

Cyclopedia of Commerce, Accountancy, Business Administration Volume 2

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1910 edition. Excerpt: ...labor, and expense. It is necessary, therefore, to keep an accurate record of material and supplies issued to the factory, just as is done in factories manufacturing goods on special orders. Labor costs should be recorded by departments, and the distribution of expense should be by departments, as far as possible. Forms similar to those shown in the preceding pages can be used. 43. By-Products. A special problem found in certain industries is to provide for an accounting of salvage, which is either sold in its natural state or manufactured into other products--known as by-products. For example, the operation of the cutting room of a harness factory is a continuous process--sides of leather are cut to produce the largest possible quantity of stock that can be used in the manufacture of harness. The pieces produced vary in sine, and it is necessary to figure the cost of cut stock by weight. After this stock has been produced, there remains a certain quantity of scrap leather. This scrap leather is not worth what it originally cost in the sides of leather, but has a certain market value. It should, therefore, be weighed and the value credited against the gross charge for leather to the cutting room. Now, some manufacturers, instead of selling this scrap as it conies from the cutting tables, convert the best of it into such by-products as heels and washers, selling the residue as scrap. Here is an added manufacturing process--a new department, operated because the price obtained for the by-product makes it profitable. The natural thing to do is to keep accurate cost records for this department, charging the material at scrap prices and take credit for the profits. But some accountants contend that the value of the by-product--less cost more

Product details

  • Paperback | 94 pages
  • 189 x 246 x 5mm | 181g
  • United States
  • English
  • black & white illustrations
  • 123698207X
  • 9781236982070