ABSTRACT
The introduction of electricity and steam, and use of machinery-or "congealed labour", as it has been termed by Karl Marx-has led to very careful and systematic allocation of various items making up the cost of any product. There is great confusion in the minds of the majority of people between the words "cost" and "expenditure". The view of Lord Terrington was not, however, up-held in Court of Appeal, for Master of the Rolls stated: "On the part of the traders it is argued that "the phrase 'cost of working the railway' is a term of "art referring to previous practice under the Act of "1894, that it involves many other factors besides the "labour bill, and that it necessitates a comparison "between two periods, namely, 1911 and 1913. Mr. Goddard uses various terms such as might be used in connection with cost accounting. A knowledge of all these varying "factors is essential to good-that is, to efficient and "economical-administration or management.
