ABSTRACT
The object of any system of cost accounts is primarily to show the prime cost or cost of production. Cost records are the files to which reference is made for information upon every question which arises in connection with any job. Costs can be classified as multiple costs, terminal costs, single costs, process costs and operating costs. This chapter discusses the method of ascertaining the amounts to be charged under these heads. The total amount of wages paid as shown by the wages account in the impersonal ledger has to correspond with the cost of the total time charged out through the time summary books. As regards goods and materials purchased specially for a job or any work sub contracted, such expenditure should be analysed in a separate column in the purchase journal and the individual items posted to the various accounts in the materials cost ledger.
