ABSTRACT
This chapter examines the general principles which govern all systems of factory costing and to deal more especially with terminal costs as applied to shipbuilding and engineering works, and multiple costs as applied to printers' costs, these being two classes of costs of which the chapter have had considerable experience. Professor Alfred Marshall states in his book on 'Industry and Trade' that the use of systematic analysis as an engine of business first attracted general attention as the result of the dissatisfaction with the crudity of customary methods of making up cost accounts. The whole idea of a premium bonus system is that in contrast to the piece-work system where the man receives a definite price for a definite amount of work, in the premium bonus system he receives a definite bonus based on the time he saves off the time which has been allowed for completing the job.
