ABSTRACT
The functions of a factory costing system said to be: to assist the works' manager to manage the factory; to provide the administration with facts and figures to enable it to judge of the efficiency of the works management; to provide a comparison between the cost and selling prices of each class of production; and to provide statistics to form the bases of estimates of the cost of new productions of similar nature to past productions. The primary function must ever be to provide the works' manager with prompt information upon the quantity, quality and cost of the production in such form as will enable him to see quickly just where waste of time, waste of material, and extravagance in his shop overhead expenses are arising. Comparison between true current costs and net selling prices will provide the administration with more up-to-date proof of the profits that are being earned than can be obtained by any other method of accounting.
