ABSTRACT
“The new method” the “standard costs” system, has in the meantime developed its own character, indicated or described in the papers and discussions of the 1929 international congress. The departments here involved are the engineering department, the purchasing department and the stores department. The stores department is naturally the centre, and the stores ledgers are the essential instrument. A cost account is kept for each manufacturing or construction order. If the order is divided into sub-orders, there must be the same division in the estimates, or in the standard costs sheets for standard products. The “standard costs” system contemplates that there shall be calculations of inclusive costs, prior to manufacture, or apart from the records of actual manufacture, for all production. The storehouse is responsible for using every means now in its possession to insure the prompt filling of shop orders and the maintenance of free stocks in accordance with the engineering department standards in force.
