Cost accounting

Chart of Total Construction Costs, 1909

Cost accounting is a process of collecting, analyzing, summarizing and evaluating various alternative courses of action. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability.

History

19th century

• 
  Costs of Operating and Maintaining a Railroad, 1857
• 
  Classification of Important Mechanical Operations of an Arsenal or Machine Shop, 1885.
• 
  Symbolic Tree of Costs in Arsenal, 1885
• 
  Factory accounts, Books and Forms used in connection with Wages, 1887/89
• 
  Factory accounts, Books and Forms used in connection with Stores, 1887/89
• 
  Factory accounts, Books and Forms used in connection with Prime Costs, 1887/89
• 
  Factory accounts, Books and Forms used in connection with Stockd, 1887/89
• 
  Abstract of Pay Roll, 1891
• 
  Analysis of Accounts of a Railroad Company, 1894
• 
  Diagram of Manufacturing Accounts, 1896
• 
  Diagram of Expenditure and Results, showing the relations between departments, 1897.

20th century, first part

1900s

• 
  Graphical distribution of costs, showing cost value of operations, 1903
• 
  System concerning costs and leaks, US Steel Co, 1903.
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  Prime expenditure divisions of a factory, 1905
• 
  Chart of Manufacturing Costs, 1905
• 
  Analysis of the Sales Price of a Manufactured Article, 1908
• 
  Relation of the various loss or gain accounts, 1908
• 
  C. & G. Railroad Loss & Gain accounts, 1908
• 
  Northwestern Construction Company Loss & Gain accounts, 1908
• 
  Syracuse Gas Co. Loss & Gain accounts, 1908
• 
  Canton Plow Company Loss & Gain accounts, 1908
• 
  Class of forms used in the system, 1909
• 
  Elements of Cost, 1909
• 
  Classification of operating departments, 1909
• 
  General ledger, classification of accounts, 1909
• 
  Operating ledger, classification of accounts, 1909
• 
  Chart of Total Construction Costs, 1909
• 
  Chart of Corporate Commercial Expenses and Manufacturing Expenses, 1909.

1910s

• 
  Principles of Organization by Production Factors, 1910
• 
  Factory Lands reduced to United Values, 1910
• 
  Absorption of Factors by Production Centers in Shop, 1910
• 
  System of controlling Accounts, 1910
• 
  Special order system, 1913
• 
  Dependence of total cost of supplying steam, 1914
• 
  Factors Entering into the Annual Cost of Motor Trucking Service, 1914.jpg
• 
  Essential Aids to Factory Accounting, 1917
• 
  Industrial Management Channels, 1917
• 
  Relations of Cost Elements to Selling Price, 1919
• 
  Analysis of General Ledger, 1919
• 
  Relation of Cost Books to Commercial Books, 1919
• 
  Operations of a Factory System, 1919
• 
  Relation of Stores Records to Commercial Records, 1919
• 
  Relation between Time Cards, and Work Tickets, 1919
• 
  Chart Showing Analysis of Cost Elements, 1919
• 
  Classification Chart of Factory Departments, 1919
• 
  Classification Chart of Factory Orders, 1919
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  Classification Chart of Factory Overhead, 1919
• 
  Chart Showing Handling of Material and Material Reports, 1919
• 
  Classification Chart of Labor Reports, 1919
• 
  Classification Chart of Production Reports, 1919
• 
  Classification Chart of Cost Sheets, 1919
• 
  Chart of Cost Summarizing Records and Procedures, 1919
• 
  Classification chart of General Ledger Accounts, 1919 (1)
• 
  Classification chart of General Ledger Accounts, 1919 (2)
• 
  Chart of Factory Ledger Controlling Accounts, 1919
• 
  Chart Showing Methods of Cost-Finding Applied to Various Industries, 1919
• 
  Classification chart of Factory Ledger Accounts, 1919 (1)
• 
  Classification chart of Factory Ledger Accounts, 1919 (2)

1920s

• 
  Diagram illustrating method of charting routine operations, 1921
• 
  Factory accounts, Books and Forms used in connection with Prime Cost, 1922
• 
  Chart Showing Classes of Costs, 1922
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  Chart Showing Books under Special Order Cost System Not Using Separate Factory Ledger, 1922
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  Chart Showing Books under Special Order Cost System Using Separate Factory Ledger, 1922
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  Chart Showing Books under Product Cost System, 1922
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  Chart Showing Books under Estimated Cost System - Complete Type, 1922
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  Chart Showing Books under Estimated Cost System - Simple Type, 1922
• 
  Chart Showing Interrelation of Detailed Records, 1922

1930s-40s

21st century

• 
  Cost of chicken in time worked, 1900-2000
• 
  US criminal justice cost timeline, 1982-2006
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  US criminal justice cost timeline, 1982-2007. Adjusted for inflation. 2007 constant dollars.
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  Cost analysis of a $40 retail sweatshirt, 2005
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  Activity-based Costing, 2006
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  Classification scheme of out-of-stock costs, 2011

Elements and Methods of Cost-Finding

Relations of Cost Elements to Selling Price

• 
  Graphical distribution of costs, showing cost value of operations, 1903
• 
  Analysis of the Sales Price of a Manufactured Article, 1908
• 
  Elements of Cost, 1909
• 
  Relations of Cost Elements to Selling Price, 1919
• 
  Chart Showing Classes of Costs, 1922
• 
  Cost analysis of a $40 retail sweatshirt, 2005

Analysis of Cost Elements

• 
  Costs of Operating and Maintaining a Railroad, 1857
• 
  Chart of Manufacturing Costs, 1905
• 
  Chart of Total Construction Costs, 1909
• 
  Dependence of total cost of supplying steam, 1914
• 
  Chart Showing Analysis of Cost Elements, 1919
• 
  Classification Chart of Factory Overhead, 1919

Classification of operation/departments/orders/cost centres

• 
  Classification of Important Mechanical Operations of an Arsenal or Machine Shop, 1885.
• 
  Prime expenditure divisions of a factory, 1905
• 
  Classification of operating departments, 1909
• 
  Operating ledger, classification of accounts, 1909
• 
  Classification Chart of Factory Departments, 1919
• 
  Classification Chart of Factory Orders, 1919
• 
  Classification chart of Factory Ledger Accounts, 1919 (1)
• 
  Classification chart of Factory Ledger Accounts, 1919 (2)

Other Cost element analyses

• 
  System concerning costs and leaks, US Steel Co, 1903.
• 
  Dependence of total cost of supplying steam, 1914
• 
  Factors Entering into the Annual Cost of Motor Trucking Service, 1914.jpg
• 
  Chart Showing Methods of Cost-Finding Applied to Various Industries, 1919

Presentation Cost development over time

• 
  Abstract of Pay Roll, 1891
• 
  Cost of chicken in time worked, 1900-2000
• 
  US criminal justice cost timeline, 1982-2006

Construction of cost accounting system

Classification of ledger accounts/reports etc.

• 
  General ledger, classification of accounts, 1909
• 
  Classification Chart of Cost Sheets, 1919
• 
  Chart of Cost Summarizing Records and Procedures, 1919
• 
  Classification chart of General Ledger Accounts, 1919 (1)
• 
  Classification chart of General Ledger Accounts, 1919 (2)
• 
  Chart of Factory Ledger Controlling Accounts, 1919

Cost accounting system as a whole

• 
  Diagram of Manufacturing Accounts, 1896
• 
  Special order system flow chart, 1913
• 
  Chart Showing Books under Special Order Cost System Not Using Separate Factory Ledger, 1922
• 
  Chart Showing Books under Special Order Cost System Using Separate Factory Ledger, 1922
• 
  Chart Showing Books under Product Cost System, 1922
• 
  Chart Showing Books under Estimated Cost System - Complete Type, 1922
• 
  Chart Showing Books under Estimated Cost System - Simple Type, 1922

Flows in cost accounting

Diagrams of the cost flow

• 
  Symbolic Tree of Costs in Arsenal, 1885
• 
  Industrial Management Channels, 1917

Cost data flow diagrams

• 
  Factory accounts, Books and Forms used in connection with Wages, 1887/89
• 
  Factory accounts, Books and Forms used in connection with Stores, 1887/89
• 
  Factory accounts, Books and Forms used in connection with Prime Costs, 1887/89
• 
  Factory accounts, Books and Forms used in connection with Stockd, 1887/89
• 
  Relation of the various loss or gain accounts, 1908
• 
  C. & G. Railroad Loss & Gain accounts, 1908
• 
  Northwestern Construction Company Loss & Gain accounts, 1908
• 
  Syracuse Gas Co. Loss & Gain accounts, 1908
• 
  Canton Plow Company Loss & Gain accounts, 1908
• 
  Relation of Cost Books to Commercial Books, 1919
• 
  Relation of Stores Records to Commercial Records, 1919
• 
  Chart Showing Interrelation of Detailed Records, 1922

Charting routine operations

See also : Flow chart, management diagram

• 
  Operations of a Factory System, 1919
• 
  Relation between Time Cards, and Work Tickets, 1919
• 
  Diagram illustrating method of charting routine operations, 1921

Other cost accounting principles

General pricinples

• 
  Diagram of Expenditure and Results, showing the relations between departments, 1897.
• 
  Principles of Organization by Production Factors, 1910
• 
  Factory Lands reduced to United Values, 1910
• 
  Absorption of Factors by Production Centers in Shop, 1910
• 
  Essential Aids to Factory Accounting, 1917

Forms and reports

• 
  Class of forms used in the system, 1909
• 
  Chart Showing Handling of Material and Material Reports, 1919
• 
  Classification Chart of Labor Reports, 1919
• 
  Classification Chart of Production Reports, 1919

See also

• Arithmetic
• Economic diagram
• History of accountancy
• Management diagram
• Stock certificates
• Time clock