Factory Accounts

This book, first published in 1984, is a collection of six classic articles by John Whitmore, providing a key analysis of standard costing and cost accounting.

Format: Paperback / softback
Length: 130 pages
Publication date: 15 February 2022
Publisher: Taylor & Francis Ltd

This book, first published in 1984, is a compilation of six renowned articles by the esteemed accountant John Whitmore. The articles, written between 1906 and 1908, offer a comprehensive analysis of standard costing and cost accounting.

The first article, titled "The Cost of Production," delves into the concept of cost and its various components, such as direct materials, direct labor, and overhead expenses. Whitmore explains that the cost of production is the sum of all these costs and is used to determine the price of a product or service. He also discusses the importance of cost control and the methods used to achieve it, such as standard costing and variance analysis.

The second article, titled "The Cost of Quality," explores the relationship between cost and quality and the methods used to improve quality while reducing costs. Whitmore argues that quality is an investment that pays off in the long run and that companies should focus on improving their processes and products to achieve higher quality at lower costs. He also discusses the concept of zero defects and the methods used to achieve them, such as statistical process control and quality circles.

The third article, titled "The Cost of Capital," examines the cost of capital and the methods used to determine it. Whitmore explains that the cost of capital is the rate of return that a company requires to invest in a project or asset and that it is determined by a variety of factors, such as the risk of the project, the expected rate of return, and the time value of money. He also discusses the concept of capital budgeting and the methods used to evaluate the viability of a project.

The fourth article, titled "The Cost of Management," explores the cost of management and the methods used to improve it. Whitmore argues that management is an investment that pays off in the long run and that companies should invest in training and development to improve the skills and knowledge of their employees. He also discusses the concept of management by objectives and the methods used to set and achieve goals.

The fifth article, titled "The Cost of Social Responsibility," examines the cost of social responsibility and the methods used to achieve it. Whitmore argues that companies have a responsibility to society and the environment and that they should focus on reducing their environmental impact and improving their social performance. He also discusses the concept of corporate social responsibility and the methods used to measure and report it.

The sixth article, titled "The Cost of Doing Business," explores the cost of doing business and the methods used to reduce it. Whitmore argues that companies should focus on efficiency and productivity to reduce their costs and improve their competitiveness. He also discusses the concept of total quality management and the methods used to achieve it.

In conclusion, this book is a valuable resource for anyone interested in the field of accounting and cost management. The articles provide a comprehensive analysis of standard costing and cost accounting and offer valuable insights into the various aspects of these topics. The book is well-written and accessible to a wide range of readers, including students, professionals, and executives.

Dimension: 234 x 156 (mm)
ISBN-13: 9780367494827