ABSTRACT
The development of cost accounting must begin from simple methods and simple ideas and definitions. Materials in the shoe manufacturing industry fall into four distinct divisions: 1, Upper Leathers; 2, Sole Leathers; 3, Linings; and 4, Miscellaneous Materials including what are called Findings. Accidents and blunders occur and the cost, as in some instances the cost of unused factory capacity, may be so great that it would be absurd to state it as a part of the cost of the product. The amount of net surplus or net deficiency in the upper leather storeroom should be stated week by week, and the standard of prices raised or lowered at any time that it is seen to be necessary in order to keep the prices placed on the products of the sorting, and used in issuing the sorted leathers, in substantial agreement with actual costs.
