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- Title
THE ECONOMICS OF BUSINESS COSTS.
- Authors
McFarland, Walter B.
- Abstract
Those who use cost data often discuss cost finding as though it were possible to ascertain one true or actual cost figure which, once found, can be used for any and all purposes. There are as many different kinds of costs as there are points of view from which to analyze a given business problem. Hence, as a step preliminary to intelligent consideration of cost problems and the choice of a method for computing cost figures, it seems essential that the accountant should possess a clear understanding of the different needs for cost data within a business organization, the cost concepts that are available to meet these needs, and which of these concepts of cost is appropriate under the circumstances. After the cost that is sought has thus been clearly defined and its relevance established, attention may then be turned to ways of assembling the figures. In general, it may be said that method of measurement used is a basis of cost classification that has a great deal of significance to the accountant, for he is directly concerned with formulating and applying techniques for cost measurement.
- Subjects
COST accounting; BUSINESS enterprises; INDUSTRIAL management; ACCOUNTANTS; COST estimates; ORGANIZATION; COST allocation; CONCEPTS
- Publication
Accounting Review, 1940, Vol 15, Issue 2, p196
- ISSN
0001-4826
- Publication type
Article