ABSTRACT

A letter published in the correspondence page of the issue and which was written by an accountant prominently identified with one of the leading bookkeepers’ organizations in Chicago, discusses accounting as a profession. The factory accounts of many of the largest manufacturing establishments present good illustrations of elementary bookkeeping, with the element left out. The importance of a correct system of cost accounts or factory accounts is generally recognized. The inadequacy of present systems must be admitted by all who are in the least familiar with the results obtained from their use. The Labor Account will be charged periodically with the pay-roll. Manufacturing Account will be charged at cost with all materials withdrawn from stores to be combined with labor to form the complete product. This account will also be charged from day to day with the cost of the labor expended upon the work in process.