ABSTRACT
This chapter discusses two Papers submitted at the Sixteenth National Cost Conference in London by the Cost Accountant F. W. H. Saunders and ACWA Cost Accountant Peek Frean & Co Ltd., London. Drastic changes in values in the markets of the world are already throwing costs out of balance. In this age of mechanical appliances and mass production, overhead expenses represent a much greater part of the cost than used to be the case. Highly automatic devices have displaced labour to a remarkable extent, either by dispensing with it almost entirely or by enabling much cheaper grades of labour to be used. As the mechanisation of production develops so must the cost of maintenance be expected to rise. Cost accounts will localise the increases and provide a segregation of the contributing factors. It can then be seen to what extent rising prices of materials are responsible and how much arises from other causes.
