ABSTRACT
It is the opinion of all men of sound commercial principles that no business can be carried on to the best advantage unless some method of ascertaining costs is in operation, and that no system of bookkeeping is complete which does not include Cost Accounts. The enormous extent to which they may be shown by the following instance, given by Mr. E. J. Smith. A large committee of a certain class of manufacturers met for the purpose of testing a few of the costs of their particular trade. The purpose, a basis for making the estimates must be decided upon, either quantity or weight-as per cwt. of sweets, per gross of packets of needles-and an estimate made of the weight of the different materials consumed in the manufacture of this quantity or weight of each article. Carriage inwards should be considered as part of the cost price of these materials.
