Cost accounting in manufacturing: dawn of a new era

摘要

Abstract Advances in the technology of manufacturing planning, control and operation have made conventional cost accounting practices not only obsolete but dangerous. As a portion of total factory cost, direct labour costs have declined dramatically due to improved quality materials, fewer interruptions, automation and robotics. Overhead costs, conversely, have increased greatly and the fixed components now predominate. Charts of accounts contain many trivial items and lack those now considered very important. This article presents the needed revisions.