Document 6506471

Transcription

Document 6506471
HOW
TO
FIND
Costs
Manufacturing
AND
Selling
Costs
BY
LESLIE
UNCKLESS
"t
COST
ACCOUNTANT
OF
AND
PUBLISHED
BY
MODERN
SYSTEMS
OFFICE
FIRST
DEVISER
EDITION
METHODS
DETROIT,
PUBLISHING
MICH.
COMPANY
LESLIE
1909,
COPYRIGHT,
BY
RESERVED
Aw,
RIGHTS
UNCKLESS
CONTENTS
PAGE;
How
to
Getting
Get
New
All
the
Average
Ideas
4
Information
9
Cost
10
Follow-up
ii
Labor
13
for
Methods
Piece
Payment
15
Work
15
16
Plan
Premium
Contract
Work
17
Time
17
of
Classification
18
Material
Estimates
22
Time
25
Cost
Cards
28
of Material
Classification
Expense
of Office
29
System
30
Cost
by Lots
31
Some
Items
of
Indirect
Experimental Work,
Labor
Expense
33
Designing, Etc
34
36
Patterns
Handling
Various
Salesmen's
Accounts
Relating
to
Costs
39
46
Accounts
.
46
Shop Orders
Indexing Orders
Stock
49
Room
50
Reports
Returned
Changing
Continuous
Receiving
51
Goods
of
54
Prices
57
Factories
Process
Department
239126
.
58
58
iv
CONTENTS
PAGE;
Basis
of
Rush
Orders
Apportionment
62
64
Power
Water
66
Fund
Sinking
66
Expense
Administration
67
Rent
67
Depreciation
68
Freight
and
Demurrage
69
Discount
71
Patents
and
Royalties
71
Burden
Heat,
73
Light
and
Power
75
Account
Cartage
Mechanical
78
Appliances
Loose-Leaf
Books
79
and
Card
Systems
Purchasing
Claims
How
83
How
and
to
82
File
to
Claims
Handle
Them
84
89
HOW
FIND
TO
MANUFACTURING
COSTS
SELLING
BY
COSTS
LL5LIL
UNCKLL55
ACCOUNTANT
COST-
AND
AND
AND
DEVISER
FACTORY
OF
OFFICE
to
every
SYSTEMS
INTRODUCTION
The
and
while
this, there
are
principle, the
Material
In
the
the
basic
cost
to
costing
was
probable
days
it is
but
know
and
know
to
made,
and
cost,
which
Now
there
out
their
costs,
this
work
is
and
to
not
be
of
experience gained
of
many
different
only
their
with
the
the
in advance
do
not
figure
contained
final, it is
cost
after
estimate.
an
who
goods
accounting
the
in
outcome
departments
concerns.
cost
the
figure
information
considered
subject naturally
Manufacturing
do
manufacturers
of
possible
to
tion
atten-
it became
manufacture
cases
the
the
keener
as
given
not
was
required making
in
plus
Labor
given
grew
soon
as
while
underlying
is that
not
was
the
in many
few
are
It
much
how
the
realize
cost.
competition
as
learn
to
accounting
now.
turer,
manufac-
manufacturers
cost, which
earlier
deserved,
The
of
law
one
most
have
equals
the
material
that
who
many
vital
a
plus Expense
necessary
was
is
cost
it is true
consideration
it
of
question
and
divides
itself
Selling cost,
manufacture
the
of goods,
into
two
first
the
parts.
having
to
with
second
sale.
Both
consist
largely
of
expense
items,
but
in
this
2
MANUFACTURING
connection
it is well
the
to
considered
and
Material
taken
of
care
be
work
expenses
In
loss.
as
or
and
considered
the
in other
that
business
any
be
may
yet, from
fact
the
are
not
are
not
be
truth, all Labor
they
they
ways,
sary
neces-
should
under
that
are
of
head
easily
more
ered
usually consid-
the head
under
can
of
unessential
as
expense,
consider
to
conduct
COSTS
of expense.
Some
labor and material
direct to an
article,which
simplifiesthe
charged
of
the
are
required in
not
exist,do
in
department, while
cost
the
factory,and
admit
not
of such
items
some
without
which
it could
They
treatment.
which
be
must
and
that point be disfrom
tributed
general account
usually by percentages, according to a definite
plan of apportionment which has been arranged.
The following chart shows
the various
divisions and
subdivisions
lishment.
which, in total,form a manufacturing estab-
placed
a
In the small
executive
force, but
portion of
a
relations
In
they bear
this chart
certain
a
owner
costs
are
in the
and
known
that
larger
and
the
observed.
and
the
under
gate
dele-
must
recognized
come
various
he
grows
natural, and
with
the whole
be
may
others,
are
each other
is but
extent
to
shown
find that
we
accounting, which
to
this work
to
the
his business
as
divisions
the
concerns
plant
head
of
it is connected
other
parts
of
the
work
of
concern.
To
taking
and
this
the data
stock
information
creative
department
or
primarily belongs
the
furnished
b)rthe timekeeping, accounting
departments, arranging and tabulating this
the
net
imaginative in
the
to
show
considered, yet it affords
an
There
is
nothing
propositionas it is generally
unusual
opportunity for the
results.
for his acts and is not
requires reasons
content
to do a thing in a certain
merely because
way
somebody "always did it that way." The enterprising
will weigh the acts of his predecessor and his own
man
cost
clerk
who
AND
SELLING
well, satisfyhimself
as
and
if he
finds that
he will
To
correct.
cost
be
they
accounting-is
lookout
Stoo
a
II
Superintendent
[
is
methods
in
valuable
lAcc o^
K
|~6oo
Hgr.
j[Tj^e
Salesman
pers
Kee
Kgeyer.5
|Cost
|
WorKmery
which
Treas.
Secy,
Sales
ing,
reason-
]
Sales
A|
system
it,
cl
hoi
V.Presdt.
actunng
correct
improved
yourself a more
Directors
Tlanuf
lack of
or
for
of
K
on
substitute
make
to
based
not
are
and
the
on
3
to their soundness
as
rejectthem
COSTS
Clerk
(Stenographer
OF
CHART
DIVISIONS
employe,
or
himself
a
bigger business.
cannot
be
methods
in
of
an
Perhaps
to you,
may
this treatise
employer,
system
is
so
build
to
adopted
on
costs
but the ideas will be
at
for
good that it
improve the
suggestions to
are
usually welcomed,
and
be
an
No
institution
not
SUB-DIVISIONS.
of
case
improved,
though they
new
the
AND
even
once.
will contain
expressed
in
a
way
nothing
which
4
.MANUFACTURING
should
make
is open
to
them
TO
law
GET
case,
between
the
the
the
various
cost
cost
absolutely
are
what
plus Labor
principlesof
its manufacture.
complex
or
IDEAS
Material
"
They
matter
no
is
and
change.
not
NEW
of costs
Expense equals Cost,
every
study of anybody who
suggestion.
basic
do
of the
worthy
HOW
The
COSTS
product
The
systems
ing
account-
similar
how
or
plus
simple
difference
only
offered
be
must
in
then
in the
application of the underlying principlesof the science,or,
in
some
cases,
since
some
always
of
the
accounts
detriment
eventually in
While
consider
not
them,
a
as
the
on
this respect,
meeting
defeats
There
isn't
that he
will be
some
it is necessary
further
to
as
give
ideas
the
credit
A
for
for
for
an
the
office who
a
an
for
be
kind
should
be
"knockfest"
A
called.
was
of
devoid
nality
origi-
good suggestion. Possibly
to
secure
anything
of value
the bad.
do
men
an
not
As
a
like
individual,
generally not given to the
meeting on the contrary gives each
them
is
ical
Period-
opportunity
meeting
so
get
in
rule.
is
to
to
best
of that
general meeting,
the
open
but
it is well
to
suggestions in private to
for
time,
a
within.
separate the good from
to
originator. The
is the
which
valueless, but
or
Manipulation
seem
given
meeting
make
cannot
reason
force
is
there
in
man
and
extent
ideas, but how
new
built from
be
suggestion
object
a
certain
a
bankruptcy
executive
ideas.
where
the
should
the
application,
pyrotechnic finish.
a
thus
as
interchangingof
a
off
the benefit of
business
of
to
of
subject of Organization
only
meetings
them
absence
of their business.
stave
may
the
say
ignore
men
to
results
might
we
AND
SELLING
opportunity to get credit
and just what
just what he wants
man
an
To
profitor
the
end
of the
loss for the
year
is not
know
at
5
COSTS
for
he
year
his ideas, whkh
should
what
enough.
is
have.
has
been
Monthly
the
state-
MANUFACTURING
should
ments
the
be
required showing
manufacturer
certainty can
know
automobile, it
The
engine, body,
that
be
must
group
if the
meant
by
every
case,
time
of costs
matter
that
as
is not
enough
REPORT
of
cost
different
be
etc., must
available
cost
a
although
or
cost
that may
desirable
to
at
a
to
a
small
as
total
cost
per
CASTINGS.
such
as
frame,
back
well, and
of
of separate parts of each
is to
must
OF
groups
known
the cost
system
and
the
COST
ON
down
is,for instance, an
know
to
loss,and
profitor
net
article manufactured
this that
necessarv
the
often
as
COMPARATIVE
machine.
has
who
If the
expense.
COSTS
be
be
a
success.
figured on
be done, but
know
that
It is not
each
part in
if it is at any
cost, the system
SELLING
AND
of its
admit
should
making
exhaustive
an
Cost
keeping
of red
tape
formula
be
might
it is
the
of
cost
all.
at
clear
steer
to
as
The
lowing
fol-
automobile
an
:
Cost
of parts of
Cost
of groups
a
cost
plus
cost
=
assembling
the
words,
groups
group
+
parts equals the
different
system
well
as
important
cost
a
extremes
to
quite as
explains how
shown
In other
the
carried
be
it is to have
as
necessityof
the
research.
can
anything else,and
without
shown
being
7
COSTS
"
something, the
costs
part
of group.
of machine.
cost
of the group,
the
and
the
of the
cost
the
assembling equals
of
sum
cost
of
machine.
the
for
Suppose,
engines for an
while
each
example,
automobile
the
estimate
and
figuring the cost of
that they cost $150.00
are
we
find
is $100.00
each,
increase
an
of
unsatisfactory. The question,
"where
is the increase?"
naturallyarises and it becomes
be
to analyze this particularcost, which
may
necessary
about in the following way :
gone
A
list of the parts constitutingthe engine is made
the estimated
looked
and
out
cost
Considering first
up.
the cylinder,we
that the cost is made
will suppose
up as
and
50%
follows
of
course
very
:
ESTIMATE
COST
$4.00
$3.50
Labor
7.00
7.00
Expense
7.25
7.00
Material
Total
Though
of
75
estimate
the
on
at
The
the end, if the
find that the net
Now,
$17.50, there
and
so
difference
found
of increase
where
on
is
an
the
have
increase
the
throughout
will be shown
calculations
amount
having
is
engine
each
list of parts.
whole
and
cents
$I7-5o
$18.25
been
on
each,
correct,
we
is $50.00.
increase
is, the
next
8
MANUFACTURING
COSTS
question is,"why the increase?," which
explained by the foreman having the work
increase
any
in expense
material
or
revised
be
in cost
the
to
"piece work," no
occur
by reason
may
as
labor
some
will pay
in that
posted
Where
should
of defective
done, for
parts
down
the
this work
found
on
which
"day work,"
forms
employe
per
of
estimate
and
the
which
ever,
howto
the
work
of
will
throughout
possiblecomparisons
previous
costs,
and
these
are
of
of great value.
course
and
is for
All
the
parts
some
other.
no
into
labor 1
charges
particular article Y Labor
J
direct labor
All
which
material
"
directly entering ]
construction
of
for it
purchased
an
used
or
article, }"Material
it. J
on
j
Manufacturing
Cost
All items
without
which
but
of
not
enter
such
In
way.
and
keep
systems described
and
will,if followed, make
with
be
timekeeping department
of good pieces delivered
will keep the timekeeper
is done
work
production
The
the cost.
of cost
the work
respect.
part of the
up
should
the
it is very likelythat increases will occur
foreman
in charge belongs to a great extent
keeping
be
charge, provided
If changes
figures. If
increase
only for the number
inspection department
the
and
has been
is found.
correct
is all done
except
in
to
discovered, the estimate
are
conform
to
of labor
will have
nature
and
material
be made,
that they do
not
into the article in a direct
other
words, all material
labor
longing
a
of labor
it could
used
to
in
either
factory not
a
of
the
first
betwo
classes.
CHART
i
^
[
}
^"xPense
I
|
J
SHOWING
THE
WHICH
THREE
GENERAL
EVERYTHING
A
COST
MAY
ENTERING
BE
DIVIDED.
CLASSES
INTO
INTO
SELLING
AND
GETTING
In
know
enough
to
pounds
produced
certain
there
and
that
be
to
figuring a
Are
used
At
total
is not
number
of
charges equaled
in with
in
line
the
the
there
of
a
only
is the
investigation
as
follows
job
in stock
about
for this
cores
any
be
may
foundries
most
and
be
would
:
which
will
later?
the
close
of the month
poured,
not
month's
the
cost
the
information
clerk
in any
When
establishment
of
received
all the
data
should
but
in
went
correct
not
only
have
the
enable
to
all the information
has
been
cost
and
required
figure a
to
charges
should
business
the
he has
able
molds
any
the labor
given him,
requisiteknowledge
when
which
on
there
were
production, etc.?
The
will be
instances, it
considered
cost
there
the foundry
know
certain
a
were
the
some
required,but
inventory
use
INFORMATION
castings,for instance,it
that
in
do
may
information
be
of
cost
9
amount.
This
in
THE
ALL
figuringthe
COSTS
him
to
necessary.
furnished,
until
not
he
that
time.
It makes
ends
the
be
must
cost
will be
be
done,
be
overlooked.
The
gathered
department
omissions
your
difference
no
so
mind,
noticed
the
To
and
printed
be
where
will be
fix the
importance
is
charges
Less
inventory
less value
"
charges
are
here
easy
of
to
any
should
anything
of these
to
facts in
given :
inventory
is where
that
possiblethis
for
in
used
forms
printed so
excuse
no
following formula
Total
total
The
up.
loose
product, the
the
sometimes
may
that there
what
the
get, but
=
cost.
trouble
the
often
inventory
is.
is
10
MANUFACTURING
often
overlooked,
if
or
COSTS
taken, is sometimes
figured
not
properly.
The
what
correct
the
at
a
have
have
cost
and
higher figure
than
a
Average
of
be
will cost
cents
may
cost
iron
whatever
in
on
business
one
it.
to
know
average
has
could
be
pound
per
a
the
at
fifteen cents
kind
just
to
way
cost
per
each
figurethat
to
cost
this
average
Some
ings
cast-
shipping
room
pound, and
per
the
is necessary.
the
is that
is made
be
should
matters
to
lower
casting the
the
taken
up
cost
when
in
thing to be considered
small
pieces require more
do large
of castings than
produce a ton
larger part goes back
worth
looking into.
contract
a
the
great mistake.
a
to
item
an
If
accurate
Another
is made.
foundry
pieces, for
these
but
pound,
this is
make
rule, the heavier
a
melted
to
of each
cost
the estimate
the
rarely an
production, yet
three
scales,others
per
toried
inven-
is sometimes
is
castings produced
would
As
wish
month's
of each
separate
duplicate lot
production
or
but
know,
to
figure cost's.
A
foundry might
amount
be
COST
of output
cost
good thing
pound
it is
rather
should
nothing
AVERAGE
pound
but
cost,
always
for.
produced
a
is not
inventory
an
represented
parts
they should
what
of
amount
to
furnish
remelted
be
customer
a
and
with
castingshe requires,the cost may be considered
lot,that is,charge the job with everything used
be
It must
castings
pieces of
ordered
are
figured in
remembered,
the
each
in
the
same
the
cost
is apt
unless
proportion, they
estimate, that is, for the
kind
that
however,
to
same
be
number
the
are
of
unsatisfactory
and
this naturally leads
certain
of
grouping
together.
COSTS
SELLING
AND
subdivision
the
to
pieces
11
and
of
job, the
a
figuring costs
them
on
FOLLOW-UP
To
keep
from
in process
requiresextra
that
warrant
serve
them
account
an
time
the
showing
the location
they are
started
of all parts
assembled
until
instances
labor, but the results will in many
will
In a bicyclefactory, which
being done.
ber
anything else, the numof parts is so large that a system is required to keep
moving through the factory and the following plan
used
was
illustration
an
as
well
as
:
The
issued
order
department
different parts required and
book
a
was
kept, one page
and
part ordered
of
care
as
the
season's
a
of which
used
was
for
each
to
take
large enough
were
in most
orders
the
superintendent'soffice
in the
pages
for
orders
shop
The
cases.
provided one for each operation of
written in
of the operations were
part and the names
when
the order was
columns
placed.
proper
in
columns
Take
a
page
illustration
an
as
1000
7-tooth 3/1 6"
Shop
Order
would
be
work
the
to
do
punch
on
in the
in the
how
work
much
for
one
lot and
the
being kept
entering it
ordered.
were
out,
room
sprocket of
rear
which
arrival
On
of
the
the
say
the
office auxiliaryorders
superintendent's
in the
made
a
of
number
to
start
one
work
each
of these
on
would
the
superintendent'soffice
stock
he
has
book.
in
Each
having
foreman
be
any
sent
to
job, the original
be
to
foreman
view, although
some
filed after
then
knows
time
will
the receiptof the order and the receiptof
elapse between
is marked
If the order
the
partly finished material.
from
the
be taken
"Rush,"
part of the sprockets may
hurried
and
through the other operations,but in
press
12
MANUFACTURING
deliveries
case
every
be
must
form
is made
from
A
signed for.
COSTS
one
department
ticket similar
to
the
to
another
ing
accompany-
in
and
the department
triplicate
receiving them is required to sign for them.
Once
tickets are written up. That is,they
a day these
out
NO.
DATE.
DELIVERED
THE
DELPT.
TO
FOLLOWIN6
FOREMAN
DEPT.
RECEIVED
BX
FOR
FORM
TICKET
FOR
DELIVERIES
TO
FROM
MENT
DEPART-
ONE
ANOTHER.
auxiliaryorder by the department
deliveringthem and are also placed in the "received"
in the department receiving them.
column
of the order
of parts and
of the receiptis left in the box
One
copy
are
entered
on
the
the stub is retained
books
are
provided
proper
in the
foreman's
for each
book.
department and
Two
one
of these
is in
use
MANUFACTURING
14
manufacturer
COSTS
it
properly. A record should be
kept of every employe and the accompanying form shows
in substance
the information
usually required on records
The
of this kind.
employe should
sign this record, so
that if necessary
time the
to identifyhis signature at any
record
to
RECORD
No.
OF
EMPLOYES
NAME
ADDRESS
AGE
OR
SINGLE.
PREVIOUSLY
EMPLOYED
REASON
DISCHARGED
DATE
W"TH
|QuiT
EMPLOYED
REMARKS
SIGNATURE
peculiar to
be incorporated in
the requirements of a business
may
mined
The employe's value is deterdesired.
these records
as
of supervisionhe
to a great extent
by the amount
a
who, when
men
job has been
requires.There are some
card
may
be
given them,
on,
referred
take
gettingthe
proper
time.
to.
entire
work
These
Any
of the matter
care
out
men,
information
in the
on
way
proper
account
from
of
that time
and
at
the
requiring little
SELLING
AND
valuable
supervision,are more
constantly watched
work
are
worth
They
FOR
methods
various
considered
Day
2.
Piece
3.
Premium
4.
Contract.
5.
Profit
that
time.
and
is
Of
the
hours
than
This
if
a
the
shirks to any
man
his
slow
out
is
until he
what
to
amount
shall receive,
thorough
workmen
one.
each
of
and
much
is
employe
of
help
to
to
of this time
kept busy.
work, the temptation to
given something else
be
he
fixed
different
The
man.
pay
the alert and
do
stand
vise
super-
is taken
If
a
day
around
is sometimes
too
resisted.
PIECE
or
of the
extent
are
in the
and
plan requires a large amount
runs
great
job. Wages
done
determines
give
to
seeing that
The
:
day work
the
loses
direct the workmen
worker
strong
out
fair
are
plan. This is
certain amount
for a specified
lations
stipuspent in the factory,with no
much
work
is to be done
during
course,
he turns
only
paying employes
manufacturing establishments
using
employe a
-are
just how
to
in
used
sharing.
discovered, he
of work
in
they
PAYMENT
according to the class of work
classes according to the value
up
because
plan.
of
the
of
as
and
step with
new
pay
be
to
work.
present time
number
more
more
have
work.
1.
great many
it is
each
following heads
the
under
simply paying
as
who
more.
The
of the
15
men
as
receive
METHODS
A
than
directed
and
is taken.
the
COSTS
piece work
piece manufactured
WORK
plan places a price on
and
the
employe
is
operation
paid according
each
16
to
MANUFACTURING
the
for
the work
is
be
of
number
charged
pieces he turns in. In some
he is
cases
the pieces he spoils. The temptation to slight
so
great that a rigid inspectionsystem must
where
this plan is used, in order
that
to see
installed
the count
is correct
This
should
plan
since there
COSTS
is
and
that
result in
incentive
the
more
work
is properly done.
for
money
for him
the workman
benefits the
speed up, and it also
employer by increasingthe production without
adding
the
an
to
thus
manufacturing expense,
decreasing
and
cost
his
increasing profit. The employer who sees
workmen
than their day work
rate is somemaking more
times
tempted to cut pricesand the employe puts on more
and
will make
steam
possibly as much
as
before, which
to
in another
results
in
spiteof
his extra
littleif any
When
cut.
the
exertion
price gets
the workman
can
than
regular pay while
naturally gets discouraged and quits and
the job may
have to be given day work
the
work
more
done
at
for if the workman
is to invite
big day's work
stay
the safe side and
on
that
make
but
he
day work,
on
the
next
man
in order
on
to
get
all.
Cutting piece prices spoilsall
this system,
low
so
a
the
thinks
there
good
that to
is in
turn
in
a
in
prices,he will naturally
only enough to avoid a cut.
prices it is advisable to run
cut
do
establishingpiece work
through a lot of "day work" and from the results of this
such a
determine
a
on
price for the operations,and once
this
price is established,do not change it. Of course,
In
be
cannot
pay
in
is
ability,
it and
the
firm
able
to
him
employing
who,
man
well
can
by
another, is
than
more
earn
afford
to
it.
PREMIUM
The
employe
extra
the
instance, but
every
of his
reason
werth
done
premium
plan
is that
receives, in addition
amount
for
doing
PLAN
more
arrangement
to
the
than
wages
what
has
whereby
paid him,
been
named
an
an
SELLING
AND
COSTS
day's work, or for completing a
The
specifiedtime.
proportion of
plan is not large, yet it possesses
as
17
task
a
in less than
factories
some
using
the
this
attractive
very
features.
CONTRACT
It is doubtful
much
him
benefit
to
he
the
contractor
than
is
To
it releases
be sure,
of
ever
from
supervising the work, but
for this item in the contract
price,as
pays
is rarelysatisfied unless he is making more
extent
maintain
that
manufacturer
the
better
in factories
foreman.
a
To
to
work
to the manufacturer.
than
more
if contract
certain
a
WORK
executive
advantage
the contract
is to
admit
abilityand
the
regular
than
can
system
that
the
advantage
has
contractor
better
to
men
manage
foreman
is of
superintendent
admission
which
few proprietors would
to
an
care
can,
The most
make.
noticeable
disadvantage in this system
is,that it prohibitsa knowledge of the cost of different
A
certain
price is paid for
operations being known.
of different things and to figure out just
doing a number
what
is paid for each is practically
out
impossible,and withabsolute knowledge of the cost of each operation
an
is getting value received from
its cost departno
concern
ment.
or
TIME
time
in
best Time
One
of the
of
employes
each
in the
department,
systems
for
factory is
to
whose
duty it is
taking
have
to
a
of the
care
timekeeper
furnish
a
man
the
job is started, which shows
number
and
of the job, the time commenced
name
or
in the time completed is noted
when
the ticket is turned
These
thereon.
tickets may
'be assorted
daily as to job
and after the cost of the jobs is figuredthey may
numbers
with
be
a
ticket each
time
a
rearranged by the timekeeping department
and
entered
18
MANUFACTURING
the time
on
of the
book. Machines
detail work
where
and
turned
it
makes
out
in
besides
WORKMAN'5
be
may
time
size of the
the
economical
JOB
COSTS
to do
purchased
keeping- and
cost
plant
volume
possible
to
the
or
accounting,
of
them, they
use
much
work
are
very
being absolutely accurate.
NAME
NO.
NAME
NO.
OPERATION
TIME
STARTED
NO.
Tine
FINISHED
PRICE
TIME
WORKED
TOTAL
DATE
PIECES
for
Material
stock
room
foreman, which
transaction.
office
daily and
tickets may
then
only
from
drawn
be
the
requisitionproperly signed by
a
gives
the
These
entered
be
MATERIAL
OF
article should
an
on
RECORD
JOB
INDIVIDUAL
CLASSIFICATION
the
PIECE
OK
FOR
the
PER
required information
tickets
in the
assorted
should
stock
be
taken
book, form
according
to
regarding
the
the
to
7.
job
The
num-
hers
to
articles to
or
found
and
STOCK
The
in
monthly
the
various
and
the
of the
same
a
accounts
time
form
be
merely a perpetual
figured up and the
it is
REQUISITION.
balances
to
is made
and
book
classification of
of such
amount
may
is
book
ROOM
keeping this
clerk
tickets
be
may
brought
if desired.
often
more
if it is necessary
the
job
a
month
a
FOR
stock
19
that
so
brought down, although
balance
the
once
6,
FORM
hand
charged,
together. The
all
inventory
down
be
charges against
the
know
COSTS
SELLING
AND
these
be
should
for
charges. Form
monthly by
may
be
to
shows
material
drawn
8.
the
required
which
charges
charged
forms
be
A
tion
classifica-
timekeeper
placed
on
in binders
20
MANUFACTURING
COSTS
22
MANUFACTURING
and
used
copy
them
COSTS
makes
journals, which
into the regular journal.
it unnecessary
as
to
ESTIMATES
In
on
order
article is
an
know
to
low
as
refer to the estimated
be lower
than
high. Some
this is
no
it should
as
goods
preceding
afford
why
a
the
not
or
be, it is
Each
sheet.
cost
of the
any
reason
positivelywhether
necessary
to
figuredmight
cost
still be too
and
costs
cost
a
larger profitthan others, but
should
cost
not
be
accurately
known.
Guesswork
the
them.
estimate
It is
has
should
no
place in the figuringof
never
auxiliaryto
be
used
the cost
and
as
a
while
and
costs
substitute
not
of
for
equal
importance
which
are
perhaps,
too
high.
it yet
used
which
form
should
These
may
be
item
As
of
the
represents
be
is for
Total
and
in
for that purpose.
of
material, the footing^
of the
cost
blank
considered
be
provided
a
five columns.
or
to
costs
on
estimate
four
has
check
a
an
up
needs
may
the first column
column
as
making
expense
columns
classes, extra
serves
Material,Labor, Expense
be headed
if the
and
In
23
COSTS
SELLING
AND
material
in the
this
article
'how
in turn
show
just
footings of the other columns
much
labor, manufacturing expense,
etc., should go
into
the
and
the
cost.
To
is used
take
illustrate,
for
low
a
The
heating houses.
weighs 300 pounds which, at
gives three dollars ($3.00)
This piece requiresa certain
amount
of
core
sand
value of
all
these
is entered
is all the
should
what
and
of
place
one
cent
in the
will say,
we
per
pound,
first column.
of
number
material.
figured for
be
to
dome,
steam
cost
a
iron boiler that
chaplets,a certain
The
oil or
core
compound.
under material.
Possibly this
piece, so that the total shows
in this
material
cast
pressure
sand
to
charge the cost of core
rather
than
Foundry Manufacturing expense,
try to
each casting or job, but to do
used
on
figure the amount
to
this is to charge indirectlya portion of the expense
which, of course,
gives
castings that require no cores
ings,
castmisleading and inaccurate costs, too high on some
be
cost
too low
on
others, although the average
may
The labor of making the cores
and the cost of
the same.
molding can be estimated and placed in the labor column
Some
and
a
founders
certain
plus material
column, while
is
placed
This
the
total
of the labor
percentage
is
the
in the
computed
and
placed
column
plan
is followed
cost
of
each
on
under
in
the
a
basis
expense
for the dome
head
part of the
each
part gives
the
of the labor
or
columns
total of the three
fourth
cost
to
of Total.
heater
and
figure what
24
MANUFACTURING
repairs shall
be
permits
way
it be
should
be than
molders
of
set
and
the
heavier,
easier
to
loss
these
clerk
costs
they
best
course
be
arrive
to the
done,
for
to
some
giving
the
be
results
contrary
a
be
the
cost
which
a
job
much
it
arbor
then
and
sible
respon-
proper
of
estimates
by
can
the
be
be
must
it is of
and
within
this cannot
where
is little
attention
there
estimates
is considered
outlined
cost
kind.
that
which
I hold
herein
itself and
secured
of
waste
inaccurate.
as
get
superintendent,since
instances
and
should
estimate
its part of the cost
subject of
estimate
check
only
or
somebody
superfluous operation,a
in usefulness
on
or
reasonable
given
exceeded
a
estimates
information
furnish
misleading
the
from
and
amount
of
an
up
foreman
may
The
error.
found.
finds
and
than
better
are
factory to keep
if it is
but
centage
per-
the
on
chaplets
certain
a
making
at
There
estimate.
a
be
and
puting
com-
castings
similarityof operation
a
By
running heavy.
the
fitted to
to
up
chance
by
from
is often
considered
in
the
the
good practice to figure
the attention
to
castings are
his labor
There
weigh
what
man
his
set
made,
section
year
workman
a
considered
to
matter
cost
are
to
figures. Weights
if the
The
than
It is not
call the
then
good
as
a
may
little loss
and
of
in this
adding
after
another
greater
core
castings ought
use
the
be
is not
file the
Put
weight.
may
he
as
correctly.
that
in
be
it is:
what
weight
will be
to
know
to
castings year
there
patterns and
cost
casting and
a
approximate
will make
slightvariation
only
of
contents
figured
weight
average
know
to
an
the
it is better
easily,but
for strain,
Some
The
necessary.
cubic
the
estimate
an
thorough analysisof
a
should
weight
for, and
sold
found
be
may
COSTS
in
no
time,
that
is
that
other
on
only
it is
way.
a
AND
SELLING
TIME
the
The
time
time
of employes.
form
card
FORM
each
turned
going
on
man
by him
in
at
This permits the
is not
careless
a
good
and
in
making
if
some
in
use.
out
other
is
One
commonly
is taken
TIME
in
his work
inaccurate
the cards
for
the
and
could
again
taking
a
iu
from
a
the
taking up
supply by
morning
his
the time
is
and
time, which
own
that he
reason
be
used
CARD.
night filled out.
employe to keep
plan, for
plan
25
CARDS
FOR
to
COSTS
is apt
to
get
spent by him
spent
to better
record
of the
advantage
time
were
MANUFACTURING
26
Another
record
and
in
does
remember,
give
the
cannot
of
amount
time
Of
each.
time
cards
time
must
them
to
and
of
the
book.
Some
the
pay
book
makes
it necessary
of
a
further
the
column
which
monthly
roll
pay
roll
by
for
each
to
use
and
which
to
write
employe
of
from
per
provides
classification
time,
is
be
to
times
twelve
and
year
an
intervals
to
one
for
of
name
at
workmen
form
time
only
and
book
factories
combined
the
from
has
due
into
on
where
copied
time
the
amount
the
spent
used,
are
copied
a
actual
course,
be
name
was
day before
the
if he
member
re-
he
jobs
on
the
as
always
cannot
working
the
This,
book.
the
he
ly
direct-
inaccurate,
employe
arid
time
time
is
too,
to
factory daily
the
the
is
plan
the
through
COSTS
be
having
a
account
charged.
have
the
timekeeper
go
AND
FORM
FOR
SELLING
COSTS
FOUNDRY
TIME
BOOK.
28
MANUFACTURING
This
the
is
excellent
an
factory having
that
its other
in the
way.
In
time
by
book
It is not
is often
truth, it
means
of
which
have
job
of time
saving
books
for
attempting
to
a
use
a
by its
timekeeping
right
the
and
pay
for
book
deal
great
cum-
handle
to
combined
the
month's
in the
about
in
large
so
classifya
to
but
on
be
to
defeated
be
of separate
of paper
the
and
time.
COST
of
cost
OF
MATERIAL
material
whatever
stock
waste
left-over
or
a
used,
accounts
it is gone
necessarilywastes
usually much
The
of
would
difficult
a
be
can
number
factory if
average
roll,instead
two,
large
a
it
good points would
bersomeness.
time
when
plan
the
general ledger,
COSTS
it takes
for
article is the
an
build
to
it Less the
pieces,providing
of
value
value
of the
this material
has
a
value.
The
lumber
owing
to
might
be
five
the
left-over
in the
cents
figured at
value
of
things
left
and
over
the
given
in
table
a
peculiar shape of
of the lumber
a
used
pieces which
manufacture
for that
this
rate
so
wise
proper
be
long
In
the
found
used,
by
the
as
be
manufacturer
attention
would
table is then
it will sometimes
can
some
of other
twenty-fivecents.
which
might
but
will
the
its parts
be
worth
but
there
twentyThe
articles.
it should
cost
$2.75
and
scrap
pieces represent
manufacture
these
cost
of
that
see
$3.00,
cost
there
cases
that
this
be
of other
is
are
nothing
unusual
question
department.
is
MANUFACTURING
30
their time
portion of
The
for
to
classification of
of
both
thus
these
COSTS
of these
each
office expense
and
as
departments
in turn.
then
provide
other
many
should
accounts
as
are
affected.
The
manufacturing cost should be kept in one account
and the sellingexpense
distributed
the goods sold
over
and shipped and at inventory time the sellingexpense
on
goods sold but not shipped, may
properly be considered
an
asset, as is also unexpired insurance and other matters
of that class.
Manufacturing
expense
be termed
may
the manufacture
the expenses
of
goods and sellingexpense,
incident to their sale. Up to the time goods
the expense
reach
the shipping room
ufacturing
they are subject to various manafter
this time
but
the
selling
expenses,
ence
is usually considered, although there is a differexpense
ends and the other begins.
of opinion as to where
one
but
in the shipping room
Goods
are
subject to expense,
incident
to
their value
other
but
is not
things are
should
increased
an
be added
not
which
expense
to
the
and
Rent, insurance
by them.
taken
be
must
of the
cost
care
of,
goods.
SYSTEM
is order"
''System
are
used
to
maintain
and
whatever
this
condition
forms
may
or
methods
rightfully
be
curacy
tends to confusion, inacsystematic and whatever
or
incompleteness is not deserving of the name
System.
records is
elaborate
The institution having the most
the most
systematic. Real System aids in
not necessarily
called
the transaction
so-called
systems
are.
where
one
of records
by
satisfactorily
A
cost
It is not
of business.
a
houses
Many
could
be
system should
have
to
do the
of the
just as
as
keeping two
are
made
rearrangement
hindrance
a
few
work
many
sets
more
forms.
different forms
SELLING
.VXD
as
will
properly
the
and
the
cost
handle
In
the
truth
31
under
matters
should
system
concern.
COSTS
in
work
they
should
consideration
with
be
the
of
books
merely auxiliary
found in totals
give in detail the information
in another
in the ledger. Considered
sheet
cost
a
way,
books
used in the
is merely a transcriptfrom the various
accounting department of a business.
books, which
COST
In
of
this method
LOTS
BY
figuring costs
is
cost
a
figured on
through the
the factory
comes
completeness of each lot which
factory. A certain quantity is ordered from
the
the
and
stock
material
it is drawn
make
to
necessary
from
the
there
will
room.
the order
When
few
usually be a
owing
to
stock
furnishes
has
parts
all been
run
hand
which
on
through
be
cannot
bled,
assem-
age,
shortage of other pieces caused by breakAn
the
etc.
inventory of these is taken and when
is deducted
from
is figured their value
the total
cost
charges shown by the ledger. The balance is the net cost
The
and having this it is easy to find the amount
made.
unit
book
is
information
that
and
the
cost
per
easily found.
By letteringthe lots Lot A, Lot B, etc., it is possible
to
lot before
the second
start
keep the
through
costs
separate
factory in
the
boxes, barrels
or
side tracked
and
shop
first is finished
work
if the
and
the
cars
the
proper
full of
is
kept moving
there
way
will be
when
no
material
partly finished
possibly overlooked
still
and
inventory
an
is taken.
The
which
of
is the
storeroom
is not
parts is
being
on
the
\vorked
proper
and
on
material
the fact that
quantity
shop floor should
shop order
for the article of which
issued
that
and
place to keep
it should
be
be
it is
a
evidence
a
part has
kept moving.
Men
that
a
been
and
32
MANUFACTURING
machines
the
be
must
result is
to
COSTS
kept busy
something
be
and
parts kept in motion
worth
while
in the
if
of
way
often made
that "No
profit. The statement
system is so
be improved," is very true and though
good that it cannot
the cost keeping is done
by the cost clerk, he usually has
little to say about
it, his work
being to take the
very
information
given him and from it to figureout the costs.
The cost clerk can
make
suggestions,however, if he finds
that things are
not
going as they should and may
ate
co-operforce to the advantage of the latter,
with the executive
if he is properly encouraged.
The various
work
in harmony to
departments must
the
secure
which
solved, few
be
cannot
There
results.
best
are
few
but
difficulties which
problems
be
cannot
organizationworking in the proper spirit.
be
friction should
No
permitted between
departments.
but friction produces wear
There may
be friendlyrivalry,
by
overcome
and
an
loss.
means
f
Cartage.
( Labor
material, other
\ Packing
standard
t
packages.
Shipping
Sales
Assistants
Manager,
their
and
than
Salesmen
and
expenses.
Advertising.
Selling Expense
\ part
of
Administration
in
expense
some
cases.
Commissions.
I
CHART
ACCOUNT
ACCOUNT.
of
Part
of
TO
books.
THE
THE
BE
account.
Stationery account.
OF
EXPENSE.
IS
Postage
Mileage
SOME
SHOWING.
SELLING
Part
CHARGED
ITEMS
TOTAL
WHICH
OF
PERIODICALLY
THIS
UP
MAKE
EXPENSE
TO
SALES
SELLING
AND
FOR
FORM
COSTS
TO
SALESMEN
33
TO
WEEKLY
MAIL
SALES
DEPARTMENT.
Chart
showing
of
some
the
The
total of
sellingexpenses.
be charged periodically
to sales
ITEMS
SOME
incident
material
the
a
should
to
the
is to
EXPENSE
distribution
material
the
common
delivered
of
to
is to apportion
way
this expense
the material
over
certain percentage to the cost of
delivered, by adding
material
the
to
take
of this expense.
care
WATCHMAN.
chargeable
each
to
"
This
general
article made
SPECIAL
"
of
or
expense
takes
POLICE.
item
its proper
^The
well
rule
enters
whole
as
many
is that
others
whatever
all
item
is
expense
that
expense
properly
of which
share.
superintendent, engineer,
firemen, oilers,electrician,gate tenders
as
up
account.
receipt and
charged to
requisitions.A
make
account
LABOR
be
factory on
which
this expense
INDIRECT
OF
Expenses
items
under
come
of
labor
indirectlyinto an article
plant, is to be charged to an
or
or
and
The
this head.
material
which
account
timekeepers
which
benefits
the
usually called
34
MANUFACTURING
Expense
General
from
and
Stock
departments and
A
foreman's
in his
done
each
of the
cost
be
must
the
benefits
basis
received, the
used
in
Pattern,Tool, Machine
Order
or
If
in that
then
is
all the
and
department
be
increases
and
department
an
plant
which
expense
in
proportion to,
Shop
other
some
on
or
goes
expense
shop.
RepairOrder.
6997
0
No.
a
Machine
the machine
than
work
should
foreman
occupied
space
of distribution, while
further
no
the
produced
time
his
part of the
by each
borne
account.
general .expense.
a
of
Expense
General
other.
no
not
sweeper
material
ous
the vari-
to
charge only against the
a
that
articles
distributed
in Process
a
as
and
there
It is
has
same
indirect labor
the
is
department.
the
charged
in
time
department
COSTS
[Foreman
190
_
'
Rep.acement
Make
IMPORTANT.
All
used
labor
charged
material
and
order
this
on
be
must
t h e
to
ORDER
NUMBER.
All-tabor
"
an"t-
must
be
itemized
back
of
this
must
agree
charged
time
and
-material
and
with
this
to
items
number
stock
books,
the
on
order,
Charge-
on
reports,
Invoices.
Return
this order
superintendent
work
to
whe
the
Supt.
the
is completed.
Order
Completed
Foreman
ICh.rge
.T.ryihi
number,
not
(o
the
,
"
!
tbe
order
190
ol the job.
EXPERIMENTAL
The
not
charges
always
easy
it is all loss and
Because
WORK,-
the
for
to
Correct
Supt.
experimental
work
in
apportion correctly.
in others
ETC.
DESIGNING,
something
designing department
a
In
is added
is located
factory are
cases
some
to
the assets.
in
the
pat-
AND
Report
of Labor
SHOWING
SELLING
and
Material Used
BACK
35
COSTS
OF
FORM
on
this Order.
15.
36
MANUFACTURING
tern
is
room
the
and
the pattern
why
reason
good plan to issue specialorders
it is completed charge the amount
a
when
to the accounts
that should
stand
jig is designed for a machine
be made, the dispositionof
different
from
A
order.
when
the tool
manufacturer
must
drafting,designing, etc.,
first order
have
he
or
will
out
the Stock
in Process
it shows
up
is,figurewhat
the
of which
it has
If
a
cost
special
thousands
to
are
the
charge will be entirely
is required only on
a special
get the cost of specialtools,
of the goods made
the
on
NEVER
get it.
of the
account
in the cost, make
cost
for that work
the expense.
If this work
required for articles regularly made,
entirelydifferent.
Some
manufacturers
charge the cost
when
should
room
of its maintenance.
expense
It is
no
COSTS
would
the
is
handling
of this work
is
to
and
article -it is for
allowance. for it ; that
be without
it.
PATTERNS
As
as
rule patterns
a
such.
Thus,
manufactured
assets
are
should
and
be
treated
required for an article to be
charged to the pattern account
the patterns
would
be
of that article.
The
confuse
they will not
charges are thus where
pen
anybody in figuringcosts and confusion might easilyhapif the patterns were
carried in the Manufacturing or
of the article. Repairs or replaceStock in Process account
ments
and these
accounts
are
charges to expense
proper
the
repairs or replacements should, as a rule, maintain
actual or insurable value, so that littleor no
depreciation
will have
case
a
to
be
pattern becomes
used, it should
to
be
charged
an
asset.
be
off from
out
charged
of date
off the
If the manufacture
discontinued, there would
be
no
In
the pattern accounts.
is
and
books,
of
an
further
no
as
longer to
it has
ceased
article should
use
for the
be
be
tools,
38
MANUFACTURING
In
such
'whole
the
COSTS
should
"
be
charged to the job.
In bidding on
work
which
requires specialtools or
in the price quoted,
be included
patterns, their cost must
either as a separate charge or included
in the lump sum
it
little difference how
price or price per unit. It makes
In making patterns the
is done, so long as it IS done.
case
burden
or
expense
cost
is not
great
so
as
in many
other
parts
factory,and this should be taken into consideration
when
making up the basis of apportionment. The pattern
rarely includes any item of material, since practically
expense
be charged directlyto the
nail and screw
can
every
to be apporjob on which it is used and not as expense
tioned
fore,
It is,therethe entire product of the room.
over
of the
advisable
share
will of
which
expense,
any
The
head
of
be
course
etc., but
material
the
for
account
an
Power,
of Heat,
bear
have
to
charged
of
other
room
its proper
with
will
which
expense
pattern
not
have
to
departments.
his time
pattern maker, except in largershops, can divide
the different jobs better, as a rule, than
among
the
keeper
cost
afterwards
by charging it all to
the various
distributingit over
determined
by each manufacturer
must
be
as
absolute
no
can,
rule
can
for all material
manufactured
is
to
stock
himself,
Credit
ACCOUNT
STORES
which
for
This
ACCOUNT
Debit
Debit
orders.
be made.
OF
NAME
and
expense
enter
into
at
later.
ever
value of whatstock
room
from
drawn
dling.
hanof
cost
plus expense
Credit
ceived
re-
for
LABOR
Charge
,to
employes.
for
all wages
Credit
paid
different
process
as
expense
accounts.
charged
and
to
stock
the
in
39
COSTS
SELLING
AND
MERCHANDISE
total
for
stock room
Charge
delivered
to
timated
es-
mated
esti-
at
price.
cost
price.
cost
For
at
sales
for
Credit
amount
goods.
of returned
cost
SALES
sold
For
For
for
Charge
of
and
from
from
expense
various
the
The
handles
value
labor
each
and
delivered
made
The
balance
in
detail
and
book.
the
in
stock
otherwise
book
and
credited
shows
the value
information
is
account
to
be
how
factory
one
the value
As
7).
given
handled
considered
is
chandise
mer-
prices,the balance
of merchandise
is
of all
information
(Form
at cost
to
or
its costs.
This
stock
accounts
disposed of.
shows
account
apportioned
as
relatingto
accounts
the
permits the balance
prices.
cost
process
shows
room.
detailed
Sales
diagram
stock
charged
this account
Credit
terial
ma-
in the
on
estimated
stock
to
ACCOUNTS
of stores
remaining
is
of
various
at
room
goods
counts.
ac-
accompanying
the
of
Credit
expense
Charge for labor and
constituting expenses.
given
journal.
fr"m
EXPENSE
stock
as
ACCOUNTS
PROCESS
IN
material
labor
room,
account
of sales
amount
by sales
credits.
STOCK
stock
shown
prices.
selling expenses
cost
at
Credit
merchandise
for
Charge
in
as
on
a
the
on
the
way
net
hand
stock
which
profits
40
MANUFACTURING
FORM
COSTS
17.
SELLING
AND
insofar
they
as
and
expense
stock
of
the
difference
Of
account
at
found
is
the
expense
course,
particular factory and
to
various
the
other
accounts
in every
but
as
and
a
labor
rule
is
The
net
monthly
material
and
has
being
although
closed
monthly
the
any
the
account.
for
many
and
and
small
charged
whatever
to
do
to
necessary
this
this
be
figured by taking the
adding the proper expense,
of expense
the
to
with
do
to
house
branch
a
rious
va-
the
costs
is
branch
only
office,
the home
to
the
priceswhich,
certain
at
the
determined
be
may
selling expense,
billed to the branch
amount
illustrates how
herewith
representing actual
not
represent
are
distribution
shown
(18)
loss of
profitor
adjustment
accounts
and
on
desirable,although requiring more
more
form
lot and
a
accounts
can
charges
of
It is not
cost
a
monthly
a
accounts
work.
affected.
are
factory,as
material
are
balance
the
be
to
in
placed
in process
stock
The
the close
all
consulting
equaled by the
through the factory until
coming
is taken
then
without
is assumed
material
inventory
an
shown
41
loss accounts.
profitand
in process
value
be
can
COSTS
supposed
to
for
pay
them.
Manufacturing
the
shipping
marketing
cost
as
a
If
a
material
that
this
a
cost
Whatever
room.
article must
an
sellingexpense,
has
concern
in
certain
a
large part
price
called
on
to
their
by their
profits. Where
a
a
own
be
is
expense
added
to
further
no
goes
the
than
in
incurred
manufacturing-
in effect at least.
handles
representativewho
section
of the
transaction, and
lower
rule
a
as
country, it is evident
of the
sellingexpense
they
can
is eliminated
generally
representativethan
salesmen
salesman
sells
their
and
on
at
make
a
from
much
customer
to
a
no
sacrifice of
commission
there
is
MANUFACTURING
42
COSTS
!
li
i i *
I } I
m5f-"^z-J)twt-a."
I
II
*
*
i
i
I *
If 1
!
I f
fl
i
m
,
"Lil""!![{
i
l.j
n
j
1
4
i
1
1 i
I
j
I 1
!
J
SELLING
AND
no
work
guess
quantity. True,
basis
is
a
good
there
is
variable
where
FOR
will
usually
in
getting the
a
salesman
his
net
salesmen
showing
is not
sellingexpense
that
results.
best
sales
very
the
for
a
working
tabulate
S
on
a
salary
it
considered
be
results
the
known
a
nevertheless
therefore
and
show
REPORT.
profitableand
what
not.
are
interestingstatistics,
resulting
the
it is not
The
only thing
to
percentage.
cheap
who
man
of money
amount
given period
is in
It is
it,but
SALESMAN
are
in
result
is
about
It may
practice to
FORM
This
salesman
guesswork
no
43
sellingexpense.
a
quantity.
business
just what
his
to
as
COSTS
be
and
This
spent by
considered.
find
out
is the
is
what
Take
his
important
44
MANUFACTURING
FORM
FOR
SALESMAN'S
COSTS
WEEKLY
EXPENSE
REPORT.
MANUFACTURING
46
COSTS
SALESMEN'S
In
the
ledger
majority
his
Form
department.
which
report
fact
is
which
houses
some
they
and
to
suggestion
a
be
may
open
him
a
with
creditinghim
O. K.'d
are
in detail the
gives
form
common
for expenses
as
20
good plan
a
salesman, charging
him
expenditures
it is
cases
each
advanced
the amount
for
of
with
account
ACCOUNTS
the
by
for
an
sales
expense
required information,
changed
only require
required, in
as
of
report
a
a
this
kind
monthly.
It is
a
when
certain amount
and
case,
checked
the
up
essential
that
expense
reports be
these
month,
and
without
for
they
the
lot of
of
cost
proper
goods
frequent occurrence,
usually required on
what
the
to
do.
The
in
foremen
workmen.
On
to
the
in
promptly
It is
a
to
quite
the
at
selling-
impossible to
course
month.
in the
be started
has
been
such
this rule, but
and
it.
Form
The
foremen
pass
completion
the
gives
22
factory until
issued,
well.
jigsas
this
and
Emergency
the
or
may
simply
determines
instruction
the orders
are
not
are
cases
tion
informaissue
superintendentmay
size of the business
turn
him.
chargeable
are
tools and
to
to
and
ORDERS
production order
auxiliaryorders
sent
sellingfor
should
appliesto specialwork
is an exception
work
of
report is received
it is of
them
a
in the
circumstances
of it is sent
SHOP
No
the
expense
amount
at the exact
arrive
an
salesman
a
his first trip,the amount
on
by
course
as
the
of
close
soon
as
he starts
of
determined
being
advance
practice to
common
tell them
that, and
along
returned
to
to
the
the
AND
SELLING
COSTS
47
o
ROER
NO.
___
DAT
19O
E
SUPT
MAKE
DELIVER
CHARGE
TO
TIME
AND
MATERIAL
TO-
TO
SUPT.
FORM
22.
48
MANUFACTURING
superintendent,
main
may
of
If the order
is for
be
the
given
15, but
to
be
on
and
sends
them
information
essential
material
This
which
stock
that
sent
dailyon
the
to
be
sent
to
use
lot of
each
One
is retained
finished
by
the
be made
has
this
in the superintendent's
properly
a
this
the
daily
and
office to
where
ior
pared
pre-
copied
be
it is
is done
goods sign
been
the
delivered.
23.
tickets "similar to
goods
person
all orders
room
on
the
require one
and
printed in triplicate
with
to
the material
good plan
be
receiving
person
FORM
a
store
repairs,it
by Figures
shown
shop orders
the
daily,and
book
the
the
to
report may
can
report, showing that
It is
blank
for
or
On
principleis the same.
manufactured, a report should
office.
the
tool
new
specialorder
is noted
sheet
pattern,
a
the
all finished
into
K.'s them
O.
office.
14 and
stock
who
COSTS
sent
of these
to
making
the
the
Form
to
store
23,
be
sent
room.
delivery and
SELLING
AND
one
be
should
the
to
goes
the
Of
office.
equally important is, that
the
factory until
for
it.
time
to
all
all the
lot of parts
a
up
The
the
in
or
second
in
sight
or
third
the
cost.
ORDERS
indexing orders
is used.
hand
on
fact
started
be
naturally increases
INDEXING
For
is
machines
finish
set
another
should
order
material
to
department
order
orders, and
no
Having
49
the
course
of
source
COSTS
a
book
accompanying
called the Order
form
gives
Register
information
the
REGISTER
OER
FORM
usually found
up
order
an
lines
on
a
this
on
page,
by the printer. Two
at
to
one
To
the top and
hundred
look up
in
book, and for convenience
for each
one
NO.
24.
these books
number
CU5T.
pages
each
two
may
be
order, and
will then
pages
looking
printed with fifty
be numbered
may
bear
the
ber
num-
same
be numbered
from
one
inclusive.
an
order, say number
4012,
open
the book
MANUFACTURING
50
to
number
and
40
page
words, the
other
number
and
This
is
book
index
for him
place and
stock
room
stock
it
is
room
merely
be
in this space.
This
Those
such
should
two
production shall
if
a
which
shop
its
shop
for the month
a
good
the
Where
are
allowed
Material
same
to
which
A
in
it may
the
out
still
might
help
dozen
it is
this
themselves
for office
will last
use
in
month's
one
of expense
as,
in the machine
use
of the machine
at
careful
will
should
several
in limited
drawn
are
more
months.
subsequent
of carbon
perhaps
limited
drawn, although possibly
nature
will be
boxes
share
for
used
be
that
production
the
to
in
drawn
order
is drawn
accounts,
expense
be
its proper
in which
workmen
purchased
way.
In
only
supplies of
the
quantities,
tributed
dis-
charged
where
to
etc., should
charged
of it
share
charged
of waste
is
charged
point be
article is
an
account,
reasons.
stand
large amount
cost
when
are
waste,
quantitiesfor
this
be
expense.
items
cotton
as
known,
in the proper
are
from
and
into another
an
or
is not
required. Everything
asset, and
passes
asset
an
arrival
on
an
for the purpose,
ROOM
requisitionas
on
order
an
and
at least,all material
Theoretically,
the
it.
customer
customer
a
STOCK
to
by
if the number
order
an
the
readily found.
be
may
entered
of
completes
houses
be used
may
allotted to
all the numbers
as
first part
lines
the
In
required.
is allotted for each
space
looking up
facilitates
book
a
or
numbers
all the order
in
in many
supplemented
certain
a
is the
number
numbering
; either cards
in which
will be the order
12
page
the
COSTS
from
if
than
a
full bin.
in the
be treated
paper
may
they
be
months, and
chased
purit
is,
of
whole
are,
as
irregular to
course,
It makes
expense.
until
used
they
are
51
COSTS
SELLING
AND
make
one
any
month
what
littledifference
should
and
assets
be
stand
the
the articles
considered
such.
Sometimes
a
separate stock
room
is used
for
office
order
an
suppliesand it is not suggested that in all cases
be given every time a pen or pencilis required. The point
month
is to charge up in any
only what is used in that
and this appliesparticularly
to that class of material
month
It is often advisable
entering into the expense accounts.
of immediate
to purchase in excess
requirements. This
plan has advantages, such as lower prices,fewer invoices
if the proper
to credit,etc., and
dispositionof the article
is made
on
receipt,one month's sellingor manufacturing
will not be inflated to the gain of the succeeding
expense
months.
FORM
25.
REPORTS
There
a
nature
are
that
some
reports of
so
confidential
it is advisable to keep them
from
or
private
all except
52
MANUFACTURING
the
who
one
makes
printed forms
them
to
can
avoid
Form
them
and
out
the
for this purpose
all the information
used
are
absorb
this
COSTS
the
following plan
Where
manager.
anybody who
they contain,
devised.
was
sees
and
(See
25.)
The
stock
record
cards
cards, and
on
shown
the
on
amounts
to
were
write
top
cut
up
CASH
as
The
shown,
merely
were
these
DAILY
card.
away
one
of
one
FOR
FORM
secured
was
the
written
a
ruled
kev
as
REPORT.
spaces
for
the
and
when
it
of these reports, this
key
date
was
was
and
sary
neces-
placed
""4
MANUFACTURING
RETURNED
COSTS
DEFECTIVE
GOODS,
AND
OTHERWISE
When
goods are sold the quantity is
book, perpetual inventory or whatever
stock
to
call it and
therefore
be
follows
^"
to
are
is deducted
that
placed in
added
the
be
in process
Chg.
must
in
a
be
not
credited
Mdse
Cost
of goods
Sales Acct.
Difference
being
avoid
to
way
are
handle
to
necessary
The
as
must
accounts
fusion.
con-
again
of the article,
yet
account
of this kind
matters
received
in stock.
considered
It
which
returned
are
in process
goods
goods
hand.
on
amount
the stock
to
choose
hand.
on
of returned
Returned
the stock
goods
the
on
you
balance
sheets, it will be
these
recording
the
again, the
the balance
to
from
where
stock
Since the credits
made
from
noted
they
must
entries
proper
to
for
are:
value
between
and
cost
amount
credited.
Credit
and
make
the entries
will indicate
and
that
the
on
the
Customer
book
stock
the necessary
returned
deduction
the
goods,
of the month
end
in order
be made
may
This
ink.
in red
figures represent
figuringthe production at
when
allowed
Amount
find the
to
quantity actually manufactured.
If
the
different
cannot
handling
be
stock, and
more
than
returned
goods
of the matter
since
charged
sales account
the
are
the
is
a
required.
Merchandise
goods
should
do
be
not
not
salvage the
article should
be
prices and
the
balance
although
it may
charged
be
goes
in process
stock
with
the
into
advisable
the
in
some
with
parts saved
cases
any
transaction.
account
profitand
into
back
go
charged
profitoriginallyfigured on
If there is any
somewhat
defective,
of the
at
cost
loss account,
to
open
a
SELLING
AND
for
specialaccount
the
is
just how
know
55
kind, which
of this
matters
to
management
COSTS
will enable
of this business
much
occurring.
Suppose
He
manufacturer.
sections
iron
cast
a
finds
returned
entries
would
all the
be
Credit.
Debit.
Iron
the
to
it that
examining
on
His
broken.
are
Is
radiator
For
Account.
For
Sales Account.
as
Customer
for
allowed.
amount
scrap.
profit figured
transaction.
on
.and Loss or
Special Account.
of
value
metal
old
Profit
Instances
have
charging
wondering at
showed
a
profitthan
back
traced
damage
the
or
any
credited
to
charged
the
sales
why
it should
in many
that he
can
iron
showed
account
and
account
why
year
then
account
less
much
defects
of
Matters
show.
workmen
sales
may
be
instances,yet having
be made
to
pay
for the
part of it. If the transportationcompany
fault,a claim
is at
was
credit and
to
of
close
of foundries
observation
my
castingsto
returned
the
balance.
under
come
this it is seldom
done
be
For
the
when
may
be entered
profitand
the goods
loss
were
and
when
paid
should
if this account
account
received.
To
keep the records of a manufacturing concern
correctly requires in addition to a technical knowledge
the faculty of reasoning, yet there will probably always
be a class who
will persistin doing a thing in a certain
it has always been done
because
that way
body
by someway
resent
men
else, and these same
suggestions as to
because
they are afraid that the person
improved methods
offering them has his eyes on their job. When
making
it is always
suggestions to a department head or manager
in writing. Then
if he is busy
them
a good plan to make
at
the
time
he
receives
them,
the
matter
can
be laid aside
COSTS
MANUFACTURING
56
until
he
time
the
has
give
to
consideration
it the
it
deserves.
INVENTORY
PERPETUAL
things in an office system is the
perpetual inventory. The accompanying form gives the
essential information
required in a record of this kind,
of
One
the
best
NAME
UNIT
BALANCE
DATE
AMTRECQ
although
the
other
records
stock
manufactured
Whether
books
must
as
be
may
in the
stock
and
the records
be
decided
changed
are
bv
or
to be
each
be
on
man
with
combined
book, Form
sold may
VALUE
'(OR
USED
VAUUE
QUANTITY
form
f SOLD
DATE
VALUE
17, from
determined.
cards
for
or
which
loose
leaf
himself, but
SELLING
AND
the
about
These
forms
hand
not
be
for
in the
require
that
this
For
manufacturer.
make1
possibleto
This
method
paid
for that
No
for
merely
time
material
the
paid
always be
for
has
to
be
agreement.
material, estimates
based
is made.
estimate
requirements.
figure which
the life of the
is
purchased it
season's
is to be
should
work
the
at
during
lines.
two
by no means
infrequent,
given attention by every
the
names
what
matter
future
price
article
on
PRICES
for the
contracts
stock
although they
room,
these
of the
much
question.
no
are
be
subject
be
manufactured
OF
prices,which
in
can
stock
exclusivelyto
CHANGING
Changes
there
used
material
fined
con
record
the
may
for
and
are
of
value
57
COSTS
the
on
When
market
figuring
of his
job a manufacturer
might find that by reason
foresightin contractingfor material he could safelyfigure
the market
below
price,yet it would not be policy to do
this without
absolute
an
knowledge of the facts, from
which
he could
what
determine
part of the saving he
could
afford to give the customer.
bidders might
Some
have
not
protected themselves
against a raise in prices
and
of
of course
they are at a disadvantage. In matters
that kind a good plan would
be to consider all the facts
bearing on the subjectand quote according to the peculiar
on
a
of each
circumstances
manufacturer
A
articles
on
transaction.
find that he has
may
which
the
market
is lower
as
purchased, and as soon
brought to light,the difference
This difference
the Profit
but
if not,
and
and
a
Loss
loss and
account
it will result
using it. The
cents,
is
in
ultimate
some
when
thev
this kind
is
charged off.
if it is charged immediately to
it is disposed of for all time,
should
in increased
result
factories
than
fact of
a
were
in stock certain
it
costs
is the
might
same
not
be
on
every
article
in dollars
be
advisable
and
to
MANUFACTURING
58
articles,
plan except on occasional
yet at the
of taking inventory nothing should
be valued higher
the prevailingmarket
prices.
this
follow
time
than
Dividends
declared
sometime
out
COSTS
business
is
Factories,"on
expense
expenses
As
factories
these
stock
material, and
-or
enabling
without
their
which
as
bed
soon
as
becomes
of costs
requiresthe
or
and
Process
hardware
and
the
material
necessary
stock
to
room
received
correct
The
has
is borne
it is here
much
a
of articles.
by
article,
one
subdivision
a
that the
of
subject
attention.
most
DEPARTMENT
stock
the
mental
instru-
at
hundreds
receiving department of a business
charge of the shipping department, which
over
variety
a
are
size
The
material
the
factory
such
arrive
one
article is added
necessary
have
not
great expense.
making
expense
RECEIVING
of
rock
factors
two
system
one
another
expense
a
do
purchase
article in
all the
the first case,
to
these
elaborate
an
mills
or
proprietorsto
factory making but one
simpler propositionthan
but
to
it is
which
rule
a
in
In
this the modern
factories,"Continuous
class of
of expense
accounts
multiplicity
requires,neither do they have
costs
come
comparatively easy to figure
for
In
a
instance, the
factory making paper,
the product and the
is easilyapportioned over
are
as
easilydetermined.
costs.
of
to
FACTORIES
PROCESS
one
have
stands.
he
CONTINUOUS
There
besides
get right down
to
where
know
and
somewhere,
wants
man
to
wants
and
fictitious values
on
direct.
must
be
information,
and
room,
In
it may
either case
or
kept, which
the
usual
is
usually in
the
turns
be
a
in
charge
record
will show
practice seems
of
all the
to
be
AND
to
from
material
the
ente/
that
In
a
of time.
SELLING
book
check
COSTS
received
the
in
a
59
receiving book
invoices.
moderately large factory this
There
is
a
and
great number
takes
a
of articles
great deal
coming
in
daily and the following plan will do away with nearly all
of the copying and will, as a consequence,
down
the
cut
of operatingthis department.
expense
The receiving record
the
(Form 29) is made when
order
is placed. In fact, it is made
with the order
out
and
is simply a third copy
of it,the first being the order
which
goes
to
the
concern
from
which
the
material
is
the third
and
the
in the
office
constitutingthe receivingrecord
which
goes
have
these
of uniform
all three
these
sheets
be
may
and
the
date
received, may
time
the
file
Of
discussion
the form
arrange
where
course,
time,
a
if
or
allow
it in its
to
be
may
by
or
Up
the
in
kept
is used
demurrage
a
unloaded, etc., which
demurrage should
in duplicate. The
enables
that
department
prices and
all times.
of
use
To
department
record
to
permits
be
of
sure,
a
the
of all
be
to
The
the
a
copy
prompt
factory
them
to
without
be
action
if the
the
and
not
in addition
received, date
may
up
be
shipping
bills for
be secured
prices,if
receiving department,
check
one
car
where
checking
Invoices
at
will be
cartmen
cars
in
valuable
the
have
unnecessarilyand
duplicate may
the
business.
orders.
it enables
be any.
for
will
necessary
keep after
are
desired
the
quite
it may
complete
issuing the
is
to
there
in any
made
an
possibleto
this is necessary
large,as
complete
is
where
accumulate
to
be used
is not
that
although
shipped
in
are
receivingclerk
and
is not
30)
this way
evident
so
are
entirety,it
they may
what
(Form
furnishes
every
is received
user.
these sheets
shipment
a
judgment
receiptsin
at
which
number
the
by
necessary,
instances
the
book
record
that
of
record
but
made,
clerk
is not
possibleto adopt
be
rare
determined
is received
order
by
similar
provided in
the material
whether
the correct
will be
be
advantages of this system
extended
so
should
such
arranged alphabetically.
The
not
serial number
placed where
be
material
being copied in
binder
arrangement,
to
the arrangement
have
to
the
A
sheets.
record
It is necessary
size and
in addition
and
spaces,
a
the
the information
will insure
that
being
receivingdepartment.
records
on
kept
second
the
purchased,
to
COSTS
MANUFACTURING
""")
without
kept
which
ing
know-
in the office
is necessary
costs
and
in
other
62
MANUFACTURING
from
Aside
is
just
as
habit
the
and
where
be
of
is
doing correctly has
things,which
been
when
established
absolute
APPORTIONMENT
rule
for
more
apportionment
on
Labor
Productive
Hour
that
be
the
what
would
entirely wrong
methods
common
of
for the basis of apportionment.
much
would
one
Production
given
so
vary
concern
one
The
another.
be
can
Conditions
proper
to do
way
incorrect, slip-shodmethod
OF
BASIS
No
correct
a
need
things are done correctly no allowances
when
or
anything taken into consideration
a
It will be correct.
being looked over.
made
record
the
as
easy
once
is
this there
COSTS
for
base
to
are
be
the
following:
Space Occupied
Material
Output
.In
Labor
and
of
machines
two
cases
some
price
or
or
for
hour
per
of these
more
of
use
items
machines
bined.
com-
are
is to figure the apportionment
popular method
the production labor, since
of manufacturing expense
on
material is subjectto no expense
beyond that of receiving,
be charged
storing and disbursing and this expense
may
A
as
it leaves
stock
belongs
expense
of this does
value
and
the
to
add
a
to
not
the
stock
be
of
sure,
left in the
change except
percentage
increase
fictitiously
To
room.
as
part of this
but
room,
the market
to
expense
a
this
the
changes
cost
is to
assets.
manufactured
should
subject to a
for instance,of
of the general expense;
certain amount
the cost of the rent, heat and light items, although they
of any machinery in their
the use
do not require power
or
list of goods made
Take on the one
hand
a
manufacture.
is
by a factory and the knowledge of what
expense
incurred
by them, a portion of which they should stand,
All
and
on
articles
the
other
hand
a
statement
be
of the
various
items
of
should
articles which
will be
others
and
this way
In
be
not
Each
there
that
of direct
some
item
only
be reached.
the
apportion
to
are
expense
from
expense
may
case
amount
63
part of each
a
conclusions
the
few.
a
It would
in
expense
labor, while
in other
entirelyproper.
be
distribution
in the
consideration
proper
which
its peculiar circumstances
has
instance
given
be
bear
in every
correct
found
be
subject to
correct
proportion to
it might
cases
must
it will
and
expense,
COSTS
SELLING
AND
of
and on correct
costs
depends correct
of the
the
costs
case
success
depends in nearly every
is required, not
work
business.
or
Knowledge
guess
in existence
supposition. There is not a producing concern
afford to neglect this vital part of their
which
can
The sale of goods for a profitis the aim of all
business.
since
expense,
and
to
to
this
on
If it is necessary
them,
at
the
cost
from
in
cost
as
a
order
keep
to
factor
known
the
cost,
for
at
take
in
some
under
with
intact,and
the
is eliminated
result
correct
the
is all that
shade
of chance
element
a
sure
granted.
specified
orders
possiblya
force
the
The
transaction.
the
the
to
to
and
cost
book
the cost
to
be advisable
figure close
a
certain orders
take
reference
a
It may
is necessary.
cases
to
is
costs
manufacturing
known, nothing need be taken
sellingexpense
lose
of proper
the
With
invite disaster.
price or
for want
in the dark
grope
is known
in
Each
over
shipment should bring an amount
the cost large enough to be noticed and if a large part of
the shipments cannot
be made
to do this, it is better to
and quit while it is possibleto save
close down
a
part of
advance.
the
investment.
There
cost
have
and
are
but
the
add
do
manufacturers
some
are
not
their
want
clerk
the
manufacturing
others
who
turn
have
their
clerk
cost
in the
cost
who
to
material
expense
cost
wish
to know
it,so
know
and
labor
they
charges
There
themselves.
clerks
add
the
so
much
ex-
MANUFACTURING
64
all
that
pense
the
methods
the
dark
These
profitis apparently absorbed.
will take
men
some
these
and
COSTS
methods
keep
to
cost
desirable
not
are
their
show
in
men
and
not
are
generally used.
ORDERS
RUSH
There
instances
are
certain
where
orders
be
must
in
preference to others, orders which are of
that they admit
of no
such a nature
delay and to properly
designate them the following is suggested :
colored slipson which
Have
are
printed the necessary
These
be
instructions
pertaining to the business.
may
end
and
attached
for
to the shop order
on
one
gummed
The superintendent then knows
the material.
the necessity
order.
The
colored
of keeping after that
slips
rushed
out
call attention
attached
an
imprint from
Of
matter
on
rubber
the
should
other
be
may
order,
an
on
be
business
overlooked,
specialattention
slip.
is
special slips are
required that fact
when
matter
be
probably
for that
or
given
proper
matters
some
but
looked.
over-
is less
there
used, for
it if the
for
There
of
press
quite important
chance
would
stamp
communication,
In
of the
urgency
everything
course,
any
attention.
often
a
the
to
where
is indicated
by
the
point not always considered in rushing
specialorders through a factory and that is the increased
work
It is important in bidding on
to give this
cost.
factor
is
proper
one
in order
to
let
that
only proper
privilegesit enjoys.
it is
work
out
this extra
and
therefore
after
it should
not
be
have
to
tracked
side-
be
specialjob have the right of way,
the specialjob should
for the
pay
a
It costs
the
is will have
cost
orders
If stock
attention.
job
to
no
should
be
considering all
overlooked
to
more
get that
bring
determined
the
matter
of
What
more.
by the
facts in the
what
kind
case,
is made.
ufacturer
man-
but
AND
SELLING
COSTS
65
in departments
Possibly some
things are being made
which
require a great deal of space and the department is
And
not
charged enough for rent.
again, perhaps a
certain
line would
which
it is made
FORM
did
SHOWING
space
which
each
and
expenses
taken
that
easy
A
it does
GIVEN
not
of
figure as
ought to be,
such
to
to
up,
correct
it
handle
what
of expense.
are
To
when
known.
separate
a
Direct
in
of the
EACH
ically
theoret-
tion
instituvarious
solving the
labor
and
question of
thought in order
the
rent
TIME.
its share
help
BY
consider
factory as
a
for
expense
OF
PERIOD
will often
but
stand
in
department
EARNED
occupy.
requires careful
costs
to
if the
AMOUNT
department
of distribution
are
have
not
IN
better
up
AVERAGE
EMPLOYE
on
show
tion
ques-
material
is
expense
to
be
sure
MANUFACTURING
66
COSTS
WATER
Where
in
and
be
factory runs
usually much
a
for power
is
of this kind
cases
with
charged
constitute
this
These
of which
POWER
the
its expense
power
less than
when
is used
steam
should
equipment
account
power
cost
of flumes, turbines, etc., which
subjectto
are
determined
be
probable length of
time
together with the
operating, forms the power
periodicallydistributed over
bill for water
for
the
depreciation,
a
by
the
expense,
The
water
equipment.
items
may
by
estimate
careful
a
of labor
operation
the
boilers
where
This
material
and
as
steam
for
which
account
product
of the
last.
will
apparatus
cost
amount
is
an
expense.
is
used, is
a
operating,"while the water used
charge to "power account
be a charge to the departfor drinking purposes
would
ment
bill is furnished
by the
using it, and if only one
water
of
percentage
estimate
"an
company
the
amount
and
made
be
may
charged
be
may
a
certain
charged
as
desired.
FUND
SINKING
A
certain
is sometimes
percentage
set
depreciation.
another
aside
of the
for the
It is better
to
of
earnings
of
purpose
take
care
a
company
taking
of
this
care
of
item
in
way.
ered
Depreciation is always present and should be considof the
as
part of the manufacturing cost, as it is one
incident to manufacturing. Some
charge depreciation
expenses
and at the end of the year
regularly every month
the
shows
on
inventory at the original cost, which
up
nice looking
balance
sheet as
a
a
profit. This makes
statement
the
to
actual
increases
send
state
in
buildings or
to
of
value
a
bank, but
affairs,as
from
equipment
year
are
very
by
no
instances
to
rare.
year
means
represents
where
a
with
no
factory
added
EXPENSE
ADMINISTRATION
salaries of the officers of
The
chargeable
important
of each
in
a
way
being charged
In
one
factory with
his entire
devotes
with
time
I
which
the
financial matters,
salary should
in each department
his
familiar
the
take
treasurer
the
president
end
of the
care
of the
after
secretary looks
The
department.
cost
more
share.
am
while
the accounting includingthe
all the
manufacturing
and
business, the vice-president
sales and
they devote
to
will result
its proper
to
time
department,
which
properly
are
concern
presidentgives his
matters
distributed
a
part of the business
whatever
If the
their time.
be
to
67
COSTS
SELLING
AND
salary
the
presidentis charged to manufacturing expense,
is charged half
salary of the vice-presidentand treasurer
and the secreand half to office expense
to sellingexpense
tary's
of the
salary is charged, one-quarter of which
goes
to
ufacturing
man-
and
three-quartersto sellingexpense,
A little thought will show
what
dispositionis proper and
the proper
arrived
will require no
at
preparation once
further attention,being taken
of by the bookkeepers,
care
unless changes in administration
a
new
cause
ment.
apportionexpense
RENT
factory space is leased there is usually
little expense
ally
chargeable to rent account
beyond occasionother small item
putting in a light of glass or some
of this character
and since each department requiresspace,
it is proper
to charge each
department with the proper
Where
the
proportion of
The
that expense.
office is
seem
that
some
factories,even
the
concern.
no
this arrangement
The
to
the
would
be
exception
though
item
the
of rent
rule
a
no
one
proper
buildings are
is
it would
and
owned
less evident
even
for
by
if
68
MANUFACTURING
carried
under
another
COSTS
Repairs
name.
yard help, carpenter
and
there
with
department
its cost
be
can
serious
no
its proper
the
over
work,
whole
ciation,
buildings,depre-
to
etc., all
objection
to
share, instead
into it
enter
charging each
of apportioning
production.
DEPRECIATION
Except
valuable
from
necessary
This
in
instances
rare
to
year,
repairs have
been
year
the
brings up
stated, should
equipment
to
question of depreciation which, briefly
be
certain
certain
a
machine
of
percentage
of
depreciation,10%
that
so
production
to
remember
its cost
the
year.
In
matters
if
that
of
10%
ten
be
of
the
cost
beginning
and
accounts.
is
is
off
borne
is
of
amount
charged
this
It
years.
proper
machine
of
there is left,at the
first year
must
of
value
expense
for the
allow
to
the
depreciation
last, say
cost
the
each
will
that
evident, therefore,
year
accounts.
expense
buildings,machinery, etc., charged to
is charged to various
from this account
A
fact that
notwithstanding the
charged
less
becomes
each
the
by
it is well
kind
charged
off the
of the second
year,
of the
for
should
originalcost, at which the machine
inventoried, and in figuring further depreciation 10%
be taken,
year of the originalcost, not balance, should
is used the entire cost will never
if 10% of the balance
be
charged off.
only 90%
be
per
end
of
should
ten
years
have
been
One
off the
it with
In
way
to
correct
handle
loss
satisfied to know
at
made
this, a
the
end
money.
end
the
and
is to
of this kind
matters
at
amount
for
or
the books
35% of the original cost
charged off long ago.
allow
lost money
on
over
profitand
figuresto
will be
fact,there
of
the
inventorying
permissable way
of
a
But
year
the
year,
at
whether
which
charge
charging
the
for
the
at
proper
concerns
they
manufacturer
have
who
70
.MANUFACTURING
of $2.19 per
freightrate
this material
would
Nobody
kind
handled
in
incorrect
unless
of this
handling a matter
of freightare
items
frequently
small
from
which
account
that
account
is, of
Demurrage charges are properly
of
cartage and not against the contents
If given his own
the head
cartman
way,
work
but
it sometimes
car
is needed
unloading
the
on
that
so
by
carting, the
account,
demurrage
which
few
it will
for
the
arrange
charges,
particular
set
work
to
accumulates
demurrage
If outside
would
boat.
or
be
is
help
charged
to
to
charge
account.
same
always
an
item
frequently
be
found
of
unnecessary
cheaper
to
pay
charges than to employ extra
cartmen.
Freight allowed on goods sold may be deducted
from the invoice or credited on
receiptof the paid freight
former
the better
is much
bill. The
plan although not
These items are charged to sales
the more
one.
common
a
dollars
a
perfectlyproper
to
not
of
are
time.
that
it is
accrues,
is
that
car
might
contents
expense
that
so
Demurrage
expense,
of
reason
the
all teams
is
charge against
a
demurrage
no
the
and
placed prior to
for
cartage
that
happens
and
be
would
immediately
cars
secured
there
course,
distribution
proper
made.
his
that
of
separate
a
evident,therefore,
ton.
per
think
differently,
yet
It is
ton.
$3.60
costs
COSTS
account
and
credit
if the
be
demurrage
the
vouchers
kept correctly. To
bills for
credit
once
of dividends
cases
or
allow
being
in the
invoices
those
proper
the
who
way,
wish
to
yet do
following
a
year
is
to
shipper
return
to
are
freight
will result in many
unintentionallyperhaps
declared
imaginary profits. The
this point as well as on
any
about
in the right way.
the
customers
twice
on
For
of
receivable
accounts
promptly for
returned
be
must
customer
be
can
other, if the
keep
their
educated
matter
accounts
credit
on
is gone
receivable
freight on
suggested. Figure the freight
not
wish
to
SELLING
AND
on
each
shipment
it is allowed
which
on
71
COSTS
sales account
and
at
of
end
the
credit
and
specialfreight
for
total.
the
account
Then, when
freight bills are
and charge special
received for credit, credit the customer
The
of specialfreight account
balance
freight account.
the
month
should
charge
what
from
deducted
be
the
of
balance
portion of
time
a
loss
account,
the
this
it may
bills may
credited
be
never
to
to
find
after
really is, and
account
possibly be
some
as
receivable
accounts
a
profitand
for
returned
credit.
DISCOUNT
When
bill is
a
within
payment
for
It is true
the
handle
credit
this
and
just that
cost
some
consider
may
in such
it proper
books
general plan, however, seems
account.
saving to the discount
to
that
way
The
in the
of
will be
costs
discount
to
less than
much
the
a
for
saved.
so
goods
matters
difference
the
the
price
these
that.
the amount
that
invoice
show
a
discount
credit
deducted
paid and a discount
certain
specifiedtime it is customary
will
be
No
is less
to
ciable
appre-
noticed, however,
allowed
to
as
than
2%.
Discount
for prepayment
of invoices
allowed
of goods
sold is charged to sales account, in effect at least,although
discount
is charged with
In
this account
by some.
two
making the prices we virtuallyname
prices and the
rate
average
chooses
customer
which
he
ROYALTIES
Certain
articles
basis, that is
this
cases
goods.
amount
This
Where
method
be
may
PATENTS
amount
manufactured
per
unit
may
on
be
must
the patent
as
on
handling
a
royalty
paid
to
the
privilegeof using it. In such
of -the
be charged to the cost
it is a known/
quantity.
article or process
is acquired,
an
for the
is easy
of
take.
AND
certain
of the patent
owner
the
a
will
it must
be
different.
72
MANUFACTURING
FORM
COSTS
32.
SELLING
AND
The
life of
and
years
of
cost
the
the
a
one
hold
you
and
it is wise
to
first half
the
It is
of
the
consider
the
be
commercial
balance
of
cost
certain
a
of
cost
reports
not
are
but
the
has
eliminated.
be
been
made
a
balance
show
to
not
of
cost
for
rule,
a
In other
actual
the
charged
is used
sheets
sent
Otherwise
only
the
ofT
from
words,
a
bank
the
the failure
the
to
of
all
balance
subject
turing,
manufac-
properly
which
basis
a
affairs and
why
cost
if
as
to
of
state
true
state
is well
ratings given in
The
always correct.
selling and
sheet
patent
a
the
It sifts down
this includes
to
is
giving them
concern
and
provides
that
is inflated.
that
manufacturers?
many
as
That
amount
value
the
and
balance
compiling them
often
are
miskading as to the
times unintentionally
so.
many
so
patent,
a
tinue
con-
suggests
assets.
as
in
of
ered
consid-
unprofitable to
line,which
remembered
of the
sheet
it
them
enough providing that
periodically. Otherwise
It should
material
also be
practice to charge patents
to
the
of its life.
common
a
and
account
rid
get
that
practicallyworthless
make
certain
a
seventeen
the
over
It must
make
may
may
manufacture
to
during
this time.
patent
new
distributed
be
during
States is
It is evident
permitted.
must
patent
manufactured
that
is
73
United
patent in the
a
renewal
no
COSTS
handled
estimating
sheet
can
of affairs.
BURDEN
The
subject of
herein
costs
to
is
that
indirect
as
so
long
as
applied by
portion of a
such
expense,
depreciation,
power,
called
burden
name
it is
etc.
It
which
cost
as
rent,
treated
the
on
is treated
heat, light,
little what
matters
recognized and
writers
some
in the
it is
proper
way.
The
direct
manufacturer
labor
represents
who
finds
the
average
that
100%
amount
added
he
must
to
his
use
MANUFACTURING
74
as
overhead
that
the
expense
items
of
or
COSTS
burden,
do
expense
not
should
endeavor
exceed
this
to
see
figure and
w
3
"
H
s-1
tn
O
O
^H
W
H- 1
O
!"
Ci
"
z
comparative
account
statements
showing
of
each
expense
of
this
subject.
item
In
both
will
making
by
enable
an
value
and
him
to
estimate
he
centage
per-
keep
can
AND
add
one-hundred
will
thus
cent
per
arrive
at
business
take
to
SELLING
on.
in
expense
To
expense.
factory making
in stock
and
cost
in others
and
cases
A
:
of
cost
labor
figure,safe enough
ufacturing
estimating is a man-
accurate
some
illustrate
estimated
the
to
pretty
The
a
75
COSTS
selling
a
line of shelf
a
of
charge the expense
while
a
estimating its cost to manufacturing expense,
foundry making castings only on orders and estimating
the requirements of a customer,
would
consider
the
on
estimating charge as a sellingexpense.
hardware
to
carry
LIGHT
HEAT,
These
Power
same.
a
subjects
since
account
factory
heat
and
usually
are
is
general
Power
account
Power
account
Power
account
The
item
engineers
of
follows
as
Material
labor
is made
coal
includes
putting
which
are
scrap
or
the
whatT is paid the
will admit
boiler
be
an
a
as
and
illustration
statement
wood
will
the
and
to
the
the
thus
plant
in
possible its
of what
being
for
expenditures
keep
far
tubes
account
power
of
to
so
of
is credited
whatever
necessary
New
The
with
else is used
pieces
which
maintain
to
in would
by this item.
way
and
value.
them
account
whatever
or
charged
material
order
insurable
require
:
of
up
places
some
will be
and
running
this
also
Repairs
"
shop,
s'havingsfrom the wood
department deliveringit.
labor
of
departments
Material
fuel, including in
of
the
usually
firemen.
and
Repairs
same
Labor
"
"
of
be
is
least and
at
the
in
All
expense.
subdivision
part of it may
considered
production
extent
some
A
light.
expense
of
source
a
POWER
AND
the
it to
use
would
be
made
labor
of
is meant
kept
in
a
monthly,
76
MANUFACTURING
which
will show
this account.
would
Coal
naturally
yet it is
during
not
be
as
plan
to
it is used
in that
made
are
charge
credit
to
the
under
use
all the coal
charged
Where
this account
and
ments
apportion-
it would
coal
boilers
the
material,
month.
to
of
are
account
power
monthly,
coal
constituting
of this kind
this unless
do
is used
of expense
better
for
charged
to
items
statements
purchased
proper
month
a
of the various
the cost
Comparative
value.
great
COSTS
be
fuel
or
charge
much
a
and
account
account
power
material.
Of
it does
it makes
course
difference
no
costs
give correct
carelessly.It might result in
to
not
for the
and
follows:
inventory
so
various
factory the
machine
of all profits
taken
sideration
con-
having approximate
easilyfound?
departments
in
space
into
of
of the
one
were
and
shop, foundry
in addition
and
use
but
run,
of this kind
out
not
were
are
costs
long
matters
wiping
actual
W'oodshop,
department
the
is the
certain
a
treat
besides, what
when
costs
In
if the
month,
in the
as
pattern
buildings
making bicycles. In order
for power
determine
what
pro'portionof expense
properly chargeable to each department, an engineer
it in the following way :
called in who
about
went
rented
was
to
found
He
department
had
actual
in the
of
each
machinery
as
the
program
test
of
was
the
engine
of
room,
which
each
finished,it
expense
all the
for
was
power
done
was
the
At
use.
whistle
the
different
times
he
a
departments, something they
chargeable
had
been
of
blown
easily determined
was
had
system
copy.
no
signals
as
When
just how
to
their
all
run
rooms
being
had
foreman
a
had
then
only
other
by
was
that
so
departments
usual, while
machinery running. This
from
in
were
He
way.
off
thrown
factory
various
the
usual
was
each
when
used
horse-power
in the
running
center-shafts
line and
to
concern
the
was
machine
every
a
each
guessing at,
per
a
this
much
of the
and
it
78
MANUFACTURING
Tests
month.
but
electricityis
since
the
is
In
to
it
might
be
character
furnish
remarked
considerable,since
often,
Where
is not
the
that
the
be made
to
establishments.
this
can
company
have
not
some
of
test
apportioning
should
needed,
mation
required infortricity
saving in elec-
the
line shafts
eliminated
are
cases
some
the
for
expense
the
power
office
be overlooked, since it
not
rent, which
to
a
do
great extent.
a
In
value
used
power
and
to
of this kind
of immense
are
COSTS
a
flat amount
includes
general
is
items
these
which
expense,
requireslight and heat.
charged to the office for
and
the
credited
amount
simplifiesmatters
quite
to
an
extent.
CARTAGE
This
ACCOUNT
of
usually charged with the expenses
operating the department maintaining the equipment,
all
salaries paid, expenses
of repairing harness, etc., are
a
part of this
charged
this
to
station
to
or
It
and
served
the
manufacturing
to
at
As
of
work
the
done
be
to
a
by
ufactured,
man-
railroad
the
part
and
no
account
may
to
the
be
shop
divided
represents the equipment
or
figures.
to
factory
and
expense
proportion
proper
as
rule, for
a
will have
be
these
charged
wood
subject to
departments
on
be
changing,
assets, this account
should
based
might
the expense
several
the
be
can
expense,
account
proportion of
by
percentage
equipment, which
of which
borne
will require
The
apportioned requires
Part
what
charges
power
arrived
time.
be
certain
a
amounts
customers.
should
incurred
the
drawing in of material
taking finished goods to
easilybe found
can
how
is the
part is in
part
determine
shall be
account
department
Thus
To
account.
study of conditions.
careful
this
is
account
a
the
value
change
into
assets
two
and
for
a
once
long
of the
ciation.
depre-
parts,
the
one
other
SELLING
AND
the
for
charges
which
maintenance,
should
and
items
COSTS
be
charged
79
of
are
other
to
course
expense
accounts
expense
periodically.
MECHANICAL
has
Machinery
much
with
to do
in the
and
factory
in the
APPLIANCES
modern
the
of
reducing
offices
costs
found
are
results
many
large
recorders, typewriters, numbering
saving of time. Time
in such
made
and
are
variety that
computing machines
all business
requirements can be met.
give absolutely accurate
which
machines
It is unnecessary
using these
advantage
reader
to
the
of
information
get all the
can
these
in the technical
advertisers
concern
has
great
a
fashioned
in this
mention
to
devices, since
the
by writing
magazines.
necessary
business
and
a
the
old
to
is it advisable
Nor
manufacturers
the
treatise
fact that
the
on
still stick
who
those
over
dwell
up-to-date appliances
modern
methods.
and
ideas
to
at
INSPECTION
The
of
in
just this
is sometimes
and
If each
to
advisable
remains
an
produced
whichever
in
department
a
there
method
are
require inspection and
former
plan is
The
the
this
final
cost
the
of
subject
were
would
be
used,
but
articles
some
this leads
fact
the
do
which
that
the conclusion
to
great
no
not
the
desirable.
boxing
possible.
were
usually
more
inspection in
where
the
expense.
article
that
treat
to
of
cost
inspection charges, possibly there
difference
cost
inspectiontherefore
item
against the whole
expense
the articles inspected through the
reaches
manufacturing
always
not
The
way.
made
department
article is part of the
inspecting an
article,yet it is
that
matter
of
cost
an
many
Where
article may
cases
more
and
be
made
to
it is desirable
than
one
include
to
employe
do
is
MANUFACTURING
80
engaged
in this
letter
number
This
or
of
box,
label
the
deducted
from
furnished
in bulk.
market
to
they
make
are
saving
an
estimate
The
should
be.
should
be
should
a
The
if
for
the
for
part
method,
to
see
be
may
be
to
in the
order
are
open
considered
know
to
it is advisable
what
the
cost
special machinery, tools, etc.,
in
considered
and
a
the
These
not
In
is
of
cost
material
on
have
they
themselves.
on
the
is made
a
box.
boxing
purchase
this
each
is used.
one
quoting
by
giving
complaint
of
is also
concerns
money
outlay
item
one
part which
make
to
packer
when
that
finished
some
in
when
cost
happens
it advisable
that
the
packed
sheet
estimate
in the
these
article,as
an
direction
and
It often
the
furnished
be
received.
be
of
cost
considered
of
one
identify
against the packing
part
tickets may
work
and
to
serves
COSTS
order
that
an
intelligent
comparison may be made.
it is well
In changing from
buyer to manufacturer
manufacturers
who,
to proceed slowly, for there
some
are
line of
by specializingtheir product, making only one
at a minimum
figure.
goods, are able to produce them
The utilization of scrap often plays an important part in
reducing
for
made
scrap
to
has
Brass
cost.
less
a
than
much
its softness
parts
steel
of
machines
parts, for
greater value than
brass
may
be
the
may
reason
steel scrap
worked
on
faster.
often
be
that
the
and
owing
Often
it
And
than triplethe output.
again, the
possibleto more
possible has its saving
saving in sellingthe scrap where
the
is usually thrown
Even
tin, which
effect.
on
scrap
dollars per ton and the skimmings
dump, is worth many
is
from
brass
a
A
barrel.
factories
saving
to
of
enable
furnace
are
saleable
at
several
dollars
per
of the large
large saving is possible in many
in this
and
practicallyall of the small ones
instances
material alone, enough in many
waste
them
to declare
larger dividend than before
a
AND
COST
SELLING
OF
81
COSTS
F
JOB
1163
"
NAME
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31
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53
Expense
Sundry Charges
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Cost
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SIMPLE
COST
SHEET
FOR
JOBBING
FOUNDRY.
CH'C'D
82
MANUFACTURING
possibly to
and
which
the
COSTS
into
enter
manufacture
the
profit has
apparent
seemed
of
articles
on
small.
too
INSURANCE
Insurance
various
the
to
an
the
stands
and
as
divided
be
must
year
month,
the proper
should
a
be
that
will
The
twelve
insure
charges
and
parts
month's
each
for the
apportioned
which
way
into
so
amount,
one
production
has
production
stand
to
eventually. Liabilityinsurance, plate glass
expense
fly-wheel insurance
is also the subject of
LOOSE-LEAF
in the
all treated
are
same
way,
taxes.
AND
BOOKS
SYSTEMS
CARD
given to the subject
accounting and in most
great deal of thought has been
A
of loose
leaf and
factories
their
there
card
and
places
books
bound
where
each
of
combination
A
advantage.
an
books
some
are
of
systems
is
use
leaf
cards, loose
as
in
departments
part charged each
this
which
expense
department getting its rightfulshare.
each
for
is
is
usually best,
be used
may
to
good
advantage.
There
who
some
are
exclusively and
there
crazy.
for
there
places
the
best
systems
to
and
of
which
forms
defeat
books
same
a
fad
work
best
with
costs.
arrangement
A
bound
books
have
gone
cards-
best
system,
alone
cards
be
said
of
for the
give
loose-leaf
turer
manufac-
in this connection
mania
The
results.
results with
the
ideal system
fewest
is
number
in hand.
OF
ARRANGEMENT
The
and
it is well
or
old
getting the
can
and
the desired
gives the
for the
is
cards
where
that
remember
will often
that
bound
who
others
are
the
results,and
the
use
Neither
and-loose-leaf
are
yet
of
FACTORY
departments
factory which
is
so
has
arranged
much
to
do
that material
in at
starts
coming
well
out
finished
as
material
can
to
back
The
idea.
thing
avoid
quickly,and
the length of
the
from
conform
grows
this
to
trucking. Keep
and
far
so
arrange
department
one
from
with
cost
plant
a
as
to
reach
things
such
plant
made
to
ished
fin-
this ideal arrangement
is unnecessary
work
send
possible to
be
it is easy
where
increases
that
absolutely, for
avoid
to
carting of partly
course,
always
not
can
the material
as
Of
end, is pretty
other
the
at
forth
and
directlythrough,
an:l goes
continual
maintained
additions
the
product
for it.
show
he
never
plant
It is the
equipped.
nothing
of the
end
one
83
COSTS
SELLING
AXD
another
to
having the woodshop
lumber
piles.
as
the
PURCHASING
The
in
purchasing department plays
The
costs.
of
account
which
price, but
be
must
a
short
Do
time
conditions
in
agents
is not
each
attention.
our
varnish
a
house
the
neighbors across
large quantitiesof varnish.
To
me.
they have
"No,
in
is submitted
and
if the article
even
a
similar
overcome
manufacturers
placing contracts,
cans
on
for
the
which
the
hope
purchasing
in question
Send
and
have
tell without
the
the
label
been
the
a
goods
whose
on
a
outfit
made.
test
report then
pasted
whole
quantity from
same
these
transfer
and
contract
has
only.
department
make
samples together,the
your
bidder
number
must
to
dishonest
varnish.
Get
tin
be of benefit
it may
for
factor
a
our
following plan
the
receive
now
is
cases,
his answer,
and
finisher,"surprised
crooked
that
use
important part
not
only on
There
some
salesman
a
I mentioned
sell them?"
you
in
shall
"They
selected
well.
as
with
matter
ago,
said:
and
street
quality
talking with
While
be
must
reckoned
this
and
foremen,
material
an
merit
The
he
and
label
the
to
to
bearing
a
finishing
finisher
is
new
cannot
testing.
if it shows
He
that
84
MANUFACTURING
the
kind
you
it.
I do
not
finishers
and
not
then
proceed
that
work
oil houses
wanted
chances.
asked
the
see
the
by
they
test
a
are
I
as
The
Permanent
them
are
anything
now.
16
less than
If it is necessary
I believe
it is
for
good plan
a
of the
be
for
from
distributed
making provisionfor
that
a
does
not
report
a
purchasing agent
see
of
his
callers
it is necessary
will
do
CLAIMS
best
by
see
indeed
to
c.
interview
and
to
foreman,
take
to
same
department
on
them.
Finally,I
who
tried
after
believe
injusticeif
an
to
attempts
call
on
interest
to
all in order
them
place
be
this
himself
on
dollar.
a
a
samples
most
built
never
100
to
to
will be
and
interview
the
going
find the
he
him.
him,
one
you.
TO
HOW
AND
In this article
is
as
is
will, it is true, fail
to
requisition
a
methods,
to
does
salesman
every
is
back
work
future
Ib. and
a
purchasing agent's desk
should
him
with
service
to
to
representatives from
through
salesman
a
salesmen
purchasing agent. They
in his
oz.
its foremen
have
traveling man
a
of
Many
and
salesman
merely
not
It is
buying.
permits
known
engineer
order.
an
the
purchasing department
for the
honest
the
which
I have
never
salesman,
a
firm
the
do
factory to
a
straightforwardand
are
that
''Purchasing Department,"
for
tion
and
who
to
the
to
for
employes outside
taking long
who
that
say
prove
should
purchasing agent
interview
but
to
using
on
great proportion of
any
I would
Rather
profitablething
a
do
at
that
suggest
best, keep
suggested.
The
be
to
mean
is the
used
always
is dishonest.
all honest
have
have
COSTS
no
required and they
specialforms
are
so
THEM
HANDLE
simple
shown,
are
as
to
be
as
but
few
readily under-
MANUFACTURING
80
both
This
offices.
forth, that
have
to
make
if you
pay
To
in
damaged
a
claim
and
and
should
be
claim
the
is made
remittance
the
claim
order
the
will
then
makes
at
a
an
the
glance
been
the
found
has
The
placed
claims
has
reason
ent
conveni-
ask
a
and
the
ledger.
cash
the
in
check
items
auditor
the situation
for the
think
of
book
then
when
see
When
number
unchecked
can
that
whenever
company
the
on
he
to
with
correspondence
in the
and
can
claims
printed asking
The
payment.
original
All
very
post it and
may
essential
heads
claim, the
a
of the books
who
man
charge
that
the
matters
of
the
rule,
no
claims
are
just
the
enters
representatives of
if these
be
letter
is made
posted
entering
transportation
in all
to
or
the
on
the
found
be
paying
unpaid
he
of
transportation
be
In
all the
the
to
charge
if necessary
and
lost
goods
credit.
panies
com-
ence,
correspond-
that
the matter
unduly delayed.
If the
up,
a
the
examination
especiallyif
has
A
should
and
for
office files.
may
referred
should
represent
the
request
book-keeper
charge
would
course,
attached
will be
matter.
it pays
be
numbers
is received
that
both
should
quantity
against
of
giving
a
be
of the claim
number
written
and
number
relating to
for
customers
be
a
will
work.
of claims
kept for
for the
you
rendered
as
letter is mailed
numbered
put
possibly for overcharges
this
copy
in addition
and
a
by
to
a
spaces
claim
in
lading. This
company
your
and
often
against transportation
consist
letter should
a
bill of
of extra
claims
should
sent
information
blank
the
transit
freightbills
argument
bills
the
pay
amount
up
They
:
the
answer
deliveryof freightwhich,
on
sum
must
don't
immense
an
COSTS
routing
railroad
the
will
receive
handled
claim
claims
need
by
ever
and
and
follows
interviews
companies,
separate
be
with
it will be
attention
better
them
than
departments.
withdrawn,
is
a
SELLING
AND
good
for
motto
The
ledger
claim
is entered,
and
of
unless
business
the
filingclaims
satisfactory. Folders
claim
so
numbered
are
is
that
paid
Index
matter.
be
will
enable
the
for
required
should
be
according
regarding
them.
1.
Name
2.
Date
3.
Amount
4.
Number
The
the
stamp
The
it.
month
index
as
on
This
of
to
in
the
letters
in the
so
notice
in which
back
to
brings the
register which
and
as
they
are
filingbox
desired
claim,
write
to
of
is
each
in
claim
to
take
claim
claim
a
out
the
it up
be
again.
require
index
cheap
may
may
automatically.
is indexed
numbers
of
required,
which
clerk
set
a
card
list of claims
simply
taking
the
is
a
once
event
all that
to
regarding
write
to
in any
but
a
the
of this the
that
be
to
used
be
may
written
were
it is desired
the date
A
kept
will
for each
cards
thirty-oneis
regard
to
be
ten
company
on
which
attention
may
live
contain
space
one
arrangement
claim
but
claim.
on
writing
the
A
one
a
is transferred
readily what
it is
date
as
entered
the
from
to
soon
claims,
out
cards,
very
claim
claim
of
placed ahead
As
many
pick
general practice seems
of this kind,
matters
cards
when
the
to
was
of
dates
are
to
transportation
Claim
rest
each
nothing
multiples of
in
there
These
of
one
for
claim.
the
contains
arranged
the
laxity in
will contain
clerk
which
used
in
found
day's correspondence.
the
and
be
disposed of, it
where
it
once
much
file will
numbered
claim
cancelled
is not
the
on
today.
as
daily use
cards
desirable
very
same
against
check
a
through,
provided
otherwise
or
files in
the
of
are
the
be
can
vertical
a
as
there
his desk.
on
companies
is put
houses
have
to
serve
claim
credit
a
In
and
thus
no
87
various
the
authorizing credits
of
any
of
entered
are
department
matter
traffic manager
the
accounts
claims
whom
COSTS
book,
alphabetically
be
cards
placed
for
any
secutively,
conone
88
day
reference
a
have
been
the
of
number
card
for
placed
in
correspondence
is proper
in
disposed of,
the
of
back
is not
to
sider
con-
which
the
case
filingtray
future reference.
will
claims
require
consist
other
of this kind
considerable
will
part of the
A
his
handled
be
way.
and
customer
where
doubt
whatever
of
worth
smooth
where
you
send
cannot
proper
drive
and
him.
getting one
line again. It
as
get in
the
in the
is in
salesman
a
copy
other
any
to
in
say
the
no
of dollars
complaints
explanation will
reason
a
with
customer
customer
once
found
will often
be
of
written
letters
is
the
An
Keeping
those
There
thousands
can
a
this
of
peculiarities
because
way.
and
in
doubt.
lose
in
directly under
it
is best
you
calls
and
one
than
the
firms
many
things over
necessary
to
clerk
customer
abruptness
proper
manager,
what
the
make
to
correspondence
a
know
case
able
allow-
not
the
resents
annually just
business
often
hard
that
handled
not
are
claim
the
cases
office
any
the
on
or
advise
to
or
at
"question of
a
clerk
by having
better
outline
can
claim
is not
supervision of the sales
is in a positionto
He
the
If it is
customer
claim
bearing
allowable
the
to
up
than
new,
facts
is either
tact.
that
are
forgotten.
if it is allowed
This
if it is not.
work
be
they
They
after month.
month
of the
freight,it
credit
tellinghim
They usually
treatment.
run
when
been
it should
necessary
to
later many
have
or
and
for
better
time, as
discount
its customers
by
freight,discount, shortage and errors
There
extensions.
is no
necessityof ting
permit-
likelyto
are
house
a
of
settled
be
against
little different
of items
prices or
can
made
a
matters
to
been
place, it
through
This
if the
as,
has
if any
show
withdrawn.
or
in its
is not
be
may
The
as
paid
will
line is drawn
A
however
claim
the
numbers
paid.
or
claims
claim
a
that
the
of
necessary
regarding
serial
the
to
disposed
absolutely
in
COSTS
MANUFACTURING
a
is
man
just
lost
is
advisable
in matters
SELLING
AND
of this kind
settle
that
the
be
whole
down
whole
to
and
the
of
handling
the
the
have
to
first time
he
man
sales-
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only
Modern
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