separate double-entry system. Separation of cost accounting from financial accounting was believed to be essential. The reasons that were given then for this separation seem still valid today in view of the maintenance of the same practice in the 1982 Accounting Plan. The most important justifications were the following: 1. It facilitated the establishment and further modification of the cost accounting system; 2. In cases where there were modifications in production or in the company structure, the cost accounts could be adapted without modifying the plan for financial ac­ counting, thus preserving the inter-firm comparability of the financial information, as well as its comparability over time; 3. Charges included in product prices could differ from ex­ penditures registered in financial accounting; 4. The use of contra-accounts allowed complete freedom in cost accounting; the transformation of data for the compu­ tation of product prices and the determination of results of operations could thus be done freely without altering the original accounts [CNOF, 1947, pp. 32-34, 99]. The CNOF Plan was very well designed; however, to preserve the recent tradition introduced by the 1942 Plan, only some of its features were retained in the 1947 Plan. The influence of the CNOF Plan and of the 1942 Plan on the 1947 Plan will be consid­ ered after introducing the latter. THE 1947 ACCOUNTING PLAN As the first official plan drafted after the Liberation, the 1947 Plan constituted the real beginning of accounting normalization in France. It was initially designed for industrial and commercial undertakings, but with the intention of adapting the plan to all sectors of the economy. The ultimate goal of the Committee for the Normalization of Accounting was to create a system that would allow the summation of the accounts of all economic units, thereby facilitating the preparation of national accounts. The Committee was headed by its vice-president, Turpin, who was secretary of the Central Committee for Prices. The secretary of the Committee was Pujol, a state economic expert and former secretary of the adaptation committee for the 1942 Plan. Among the sub-committees that were formed to work on specific topics, the three most important ones were the sub-committee on prin­ ciples, definitions and rules, headed by Fourastie and Lauzel; the

2014 ◽  
pp. 344-344
Keyword(s):  
Central Committee ◽  
Vice President ◽  
Cost Accounting ◽  
Financial Accounting ◽  
Economic Expert ◽  
System 2 ◽  
Cost Accounting System ◽  
The Cost ◽  
System Separation ◽  
Double Entry

account was developed from an analysis of the various elements to be accounted for. The logic that prevailed in the selection of the order of presentation of charges was based on the distinction be­ tween the major economic and financial operations usually con­ ducted by the firm. First, production operations necessitate the purchase of material, the payment of wages to employees and of taxes to the state, and the incurring of various operating expenses. Next, a category was created to register financial charges resulting from the firm’s financing policy. Finally, a category was devoted to the cost of permanent productive means related to the period: depreciation of fixed assets. On the revenue side of the trading account, resources coming from the sale of production or pur­ chased goods were shown first, since they result from the primary activity of the firm. Next, sales revenues from two secondary sources were shown in separate categories. Production by the firm of its own fixed assets, which was considered revenue since it represented a transfer of charges to the balance sheet, also ap­ peared under a separate heading. Finally, a category was allocated to revenues from financial operations such as interest and divi­ dends. Aside from financial accounting provisions, the plan con­ tained an important section on cost accounting. As mentioned earlier in the case of the CNOF Plan, to maximize both the stan­ dardization of financial accounting and the flexibility and adapt­ ability of the cost accounting system, the plan reserved a separate class for cost accounts, number 9. Separation of cost accounting also favored the progressive introduction of cost accounting, with­ out delaying the application of the financial accounting section of the plan. The role assigned to cost accounting by the plan was threefold, including the periodic determination of: 1. The cost of manufactured or purchased products; 2. Inventories, using the perpetual inventory method; 3. The results of operations by each branch or subdivision of the firm's activities In the general plan, a main structure for industrial accounting was prescribed, leaving the problem of application to particular cases to company plans. Two measures ensured the flexibility and adaptability of the plan. First of all, the use of the decimal system meant that any account could be subdivided by adding extra digits to the account number. Secondly, the free accounts left in the general plan could be used to fill specific needs. 294

2014 ◽  
pp. 350-350
Keyword(s):  
Balance Sheet ◽  
Cost Accounting ◽  
Financial Accounting ◽  
Financing Policy ◽  
Secondary Sources ◽  
General Plan ◽  
Fixed Assets ◽  
Perpetual Inventory Method ◽  
Cost Accounting System ◽  
The Cost

of the information given to the shareholders, precautions to take for upward appraisal of capital assets, choice of an investment, and dividend policy. In order to raise enough capital for its business, the Company had to inform a growing number of shareholders, which soon became inconsistent with the managers’ freedom to deal with ac­ counting information according to their own needs. The resoultion of this problem led to the distinction between standard­ ized financial accounting for external and management account­ ing for internal use. As it became more and more efficient and advanced, the accounting system led to its own splitting. CONCLUSION Compared to most of the firms, Saint-Gobain had to face very early (in the first half of the 19th century) the problems raised by the setting up of a management accounting system. However, it was not until 1820, 155 years after its creation, that it adopted double entry bookkeeping which included the calculation of costs. This evolution is mainly due to the spreading of the Industrial Revolution in France, which was responsible for the abolition of privileges and the growth of competition in the field of glass pro­ duction. During the period 1820-1880, the cost accounting system had been gradually improved, without any regular outside coercion, according to the needs of the management alone. This leads to two conclusions and two research questions. In 1880, the accounting system facilitated the reckoning of full costs with methods and procedures that are still in use (alloca­ tion of the overhead with the use of activity center accounts, up-to-date transfer pricing methods, analysis of the relationship be­ tween depreciation, dividends and investments, etc ). This full cost method is now over one hundred years old. The development and the mastering of that cost accounting system were absolutely necessary to start the next stage, that is to say the use of those costs to prepare estimates of costs and investments. That stage took place over four decades (1890 to 1930) and led to real budget control towards the end of the Second World War. It should be recognized that the accounting systems of a given period can be very different from one another, which is particu­ larly true in the 19th century, therefore research should look at the variables on which the accounting system of each firm depends. Among the internal ones, the size of the firm, the culture of its

2014 ◽  
pp. 267-267
Keyword(s):  
19Th Century ◽  
Industrial Revolution ◽  
Transfer Pricing ◽  
Cost Accounting ◽  
Accounting System ◽  
Accounting Systems ◽  
Cost Accounting System ◽  
The Cost ◽  
Double Entry ◽  
The 19Th Century

THE INFLUENCE OF TAX LEGISLATION ON FINANCIAL ACCOUNTING: A STUDY OF THE TIMBER INDUSTRY, 1905–1925

1987 ◽  
Vol 14 (2) ◽  
pp. 41-57
Author(s):  
Robert C. Elmore
Keyword(s):  
Cost Accounting ◽  
Financial Accounting ◽  
Accounting System ◽  
Asset Valuation ◽  
Timber Industry ◽  
Internal Revenue ◽  
Accounting Practice ◽  
Tax Legislation ◽  
Tax Laws ◽  
Cost Accounting System

The purpose of this paper is to examine the financial accounting records of a Mississippi timber company and its subsidiaries in light of the dynamic tax environment of the period 1905 to 1925. The financial accounting records and correspondence with the Commissioner of Internal Revenue indicate deficiencies in the following areas: asset valuation, a lack of a cost accounting system to adequately value inventories, and the depletion and depreciation deduction. The demands of the new tax laws were often in conflict with the accounting practices of this period of time forcing changes in accounting practice.

EARLY COST ACCOUNTING PRACTICES AND PRIVATE OWNERSHIP: THE SILK FACTORY COMPANY OF PORTUGAL, 1745–1747

2007 ◽  
Vol 34 (1) ◽  
pp. 57-89 ◽  
Author(s):  
José Matos Carvalho ◽  
Lúcia Lima Rodrigues ◽  
Russell Craig
Keyword(s):  
Industrial Revolution ◽  
Production Control ◽  
18Th Century ◽  
Cost Accounting ◽  
Management Control ◽  
Financial Accounting ◽  
Accounting Systems ◽  
Product Costing ◽  
Double Entry ◽  
Political Economic

This paper contributes to an understanding of the historical development of management accounting by presenting an example of cost accounting practice in Portugal in the first half of the 18th century. It explores the integration of cost and financial accounting systems within a double-entry accounting framework by the Silk Factory Company (SFC) between 1745 and 1747. The SFC's methods of product costing, pricing, inventory accounting, expense recognition, and production control are reviewed within the political, economic, and social context of Portugal at the time. The SFC is revealed to have used job-order product costing, with allocations of overhead costs, allowances for wastage and shrinkage, and elements of rudimentary standard costing. Our findings provide evidence of the existence of cost accounting and management control techniques at a private rather than a state-owned enterprise prior to the industrial revolution.

The Design and Implementation of Team Cost Accounting System Based on Dynamic Data Collection

2010 ◽  
Vol 439-440 ◽  
pp. 1277-1280
Author(s):  
Hong Jun Guan
Keyword(s):  
Information Technology ◽  
Data Collection ◽  
Cost Accounting ◽  
Production Equipment ◽  
Accounting System ◽  
Dynamic Data ◽  
Design And Implementation ◽  
Collection Data ◽  
Cost Accounting System ◽  
The Cost

With the development of information technology, as the basis of economic accounting of the companies, it is possible for team cost accounting to be provided with various of basic data collection, data processing and sharing of such data. First of all, the related technology is introduced, then combined with the production process of C4 workshop, it described the analysis result and scheme. In this process, obtaining dynamic data from production equipment is the first step, then according to different devices and various requirements of product cost accounting, calculate the cost for each team, and finally realize the need for assessment of the teams.

scholarly journals Investment in human resources and its impact on the development of banks and profitability A study from the viewpoints (financial accounting) applied to the Bank of the Al-dijl and Al-Forat for the period (6227 - 6212)

2016 ◽  
Vol 2 (2) ◽  
pp. 215
Author(s):  
Mohammed Hameed Ibrahim ◽  
Ammar Shahab Ahmad ◽  
Arshed Mohammed Al-Mahmood
Keyword(s):  
Human Resources ◽  
Market Share ◽  
Cost Accounting ◽  
Financial Accounting ◽  
Leadership Attributes ◽  
Modern Business ◽  
The Cost ◽  
The Relationship ◽  
Increase Efficiency

The human resources of the new element of the production elements in light of the knowledge and characte ristic economy flagship of the leadership attributes enjoyed by modern banks, and from this point of banks seeking to develop human resources in order to be able to offer various traditional and modern business than can banks to increase their market share and reflect positively their profitability. Sheds search light on the banks that invest in human resources by estimating the cost of access to and impact on profitability, as the more developed the technology used in banks, so it needs to adapt human resources all to increase efficiency and the possibility of dealing with it, will be to prove that the cost accounting and compare it with the profitability of the bank for the same period and the statement of the relationship between investment in human resources and profitability of the bank.

A WORLD WAR II COST ACCOUNTING ASSIGNMENT

1990 ◽  
Vol 17 (1) ◽  
pp. 81-88 ◽  
Author(s):  
Dixon Fagerberg
Keyword(s):  
World War Ii ◽  
Cost Accounting ◽  
Production Plant ◽  
Accounting System ◽  
World War ◽  
War Effort ◽  
War Production ◽  
Cost Accounting System ◽  
The Cost

This article describes the development of a process cost accounting system for a war production plant in 1942. A variety of cost drivers were used for purposes of allocation of overhead. In addition, the role of the cost accountant in the war effort is emphasized.

THE OLD DU PONT COMPANY'S ACCOUNTING SYSTEM LASTING A HUNDRED YEARS: AN OVERLOOKED ACCOUNTING SYSTEM

2012 ◽  
Vol 39 (1) ◽  
pp. 53-88 ◽  
Author(s):  
Daijiro Fujimura
Keyword(s):  
Nineteenth Century ◽  
Financial Accounting ◽  
Cost Data ◽  
Accounting System ◽  
System Cost ◽  
Vital Importance ◽  
Accounting History ◽  
The Cost ◽  
Double Entry ◽  
Made In

ABSTRACT Accounting historians have not yet realized that there existed another complete accounting system before the formation of the modern accounting system of today which Johnson and Kaplan's Relevance Lost characterizes by the “integration” of cost and financial accounts supported by “inventory costing.” In that earlier accounting system, cost and profit calculations were made in a past particular ledger account or accounts, namely trading account(s), where accounting practices opposed to “inventory costing” and “integration” were used. The historical existence of that accounting system is overlooked by accounting historians. The example of the old Du Pont Company (DPC) this paper presents will bring it to light. Cost and profit calculation were made in four trading accounts in the double-entry ledger at the old DPC as it was purchased by the new DPC in 1902. One of its trading accounts dated back to 1804 when the old DPC started production of gunpowder. Early cost and profit calculations in that trading account were examined by the new DPC's staff in the early 1940s. They prepared schedules showing the cost data, sales revenues, and profit measurement recorded in the early trading account. These schedules give evidence that the old DPC recorded the costs incurred and used the cost data to compute profit for financial accounting purposes, but in different ways from today's “inventory costing” and “integration.” This old DPC's accounting system resulted from the application of the double-entry system to industrial accounting and was in use throughout the nineteenth century. By revealing the historical existence of that overlooked accounting system, this paper will show that accounting history may be described as evolution of the traditional accounting system made through double-entry bookkeeping in which the trading account was of vital importance and the transition from that traditional accounting system to the modern integrated accounting system supported by inventory costing.

Cost Knowledge and Cost-Based Judgment Performance

2001 ◽  
Vol 13 (1) ◽  
pp. 1-18 ◽  
Author(s):  
David T. Dearman ◽  
Michael D. Shields
Keyword(s):  
Cost Accounting ◽  
Performance Model ◽  
Future Research ◽  
Accounting System ◽  
Activity Based Costing ◽  
Cost Information ◽  
Good Judgment ◽  
Knowledge Content ◽  
Cost Accounting System ◽  
The Cost

This paper reports evidence on how managers' cost knowledge affects their cost-based judgment performance when a volume-based cost accounting system is used and products have diverse resource consumption. The evidence indicates that managers who have activity-based costing (ABC) knowledge content and/or an activity knowledge structure debias the cost information to have relatively good judgment performance. In contrast, managers with only cost-accounting knowledge content have relatively poor judgment performance. The judgment performance model (Libby and Luft 1993) provides the theoretical framework for this paper. Implications of this paper for future research are discussed.

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