ABSTRACT
Where the nature of the business permits, it must show definitely the progress of the work at stated intervals. Such accounts furnish a reliable basis for pricing products and also an indication of the profit earning capacity of each product. This brings us to the second object of Scientific Costing. Such accounts also provide a reliable basis for estimating the probable cost of prospective products. In certain businesses where prices have always to be fixed in advance of the actual work of production, this is a most important function, and the first object may in such cases be considered subordinate to the second. The necessity for the qualifications will be paramount if ever it becomes usual for wages disputes to be settled by reference to costs. This is obviously the first step, and until this work is well advanced it will be impossible to discuss the classification and grouping of expenses and the application of principles.
