ABSTRACT
There are two radically different methods of presenting costs; many undertakings still adhere to the earlier plan of compiling costs after the work has been completed, thus delaying information until it is of little value. By the later, and more valuable method, costs are prepared before the work is undertaken. The advantages of the second method are obvious. Not only must the facts be ascertained before the work is begun or during process of manufacture, but the figures finally tabulated are the real costs divided as to each unit, whether a single element or collated from a thousand separate elements into standard expenses and into avoidable loss. The crude tar is tested before it enters the original process and thus ascertain the standard production. The checking and control of steam costs used for different purposes or in different departments call for careful consideration. Selling prices are fixed on the costs shown when the plant works at a certain percentage capacity.
