This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 Excerpt: ... a certain amount of the factory "overhead" or "burden," this burden comprising all the indirect expense incurred during the period. The opening and closing of expense accounts and the mechanism employed in the distribution of expense form perhaps the most perplexing phase of cost accounting. Rarely is the matter ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 Excerpt: ... a certain amount of the factory "overhead" or "burden," this burden comprising all the indirect expense incurred during the period. The opening and closing of expense accounts and the mechanism employed in the distribution of expense form perhaps the most perplexing phase of cost accounting. Rarely is the matter handled in exactly the same way in two different factories. In some cases an analysis of great refinement is required for the purpose of controlling expense in all its details; in other cases the saving of clerical work is a consideration and an exact allocation is not attempted; while in still other cases the nature of the product and the size of the factory determine the expense accounts to be operated. In all cases, however, the distribution of expense involves the following steps: See also Chapter VIII. 1. Charging actual monthly overhead to produc tive, non-productive, and miscellaneous departments by means of distribution sheets, according to different bases. 2. Monthly closing of the overhead of non-produc tive and miscellaneous departments into productive overhead accounts. 3. Application of predetermined overhead rates--derived from past experience--on the cost basis for each productive department, which may be direct labor cost, direct labor hours, or machine hours, etc., at which time the Work in Process account is charged and the proper departmental overhead account is credited. 4. Any difference between actual overhead charges during the month and applied overhead is, if small, closed into the monthly Profit and Loss account, or held in suspense until the end of the year. If the balance remaining in the overhead expense account is relatively large, it means that the inventory must be refigured in order that a correc...
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Add this copy of Cost Accounting, By D.C. Eggleston to cart. $63.85, good condition, Sold by Bonita rated 4.0 out of 5 stars, ships from Newport Coast, CA, UNITED STATES, published 2011 by Nabu Press.
