Accountancy and business management .. . The fact that a certain expense amountedto last month furnishes no information of special value; butwhen compared with the amount expended for the same purposetwo, three and four months ago (if these expenses are analyzed andcompared with production or sales or whatever factor would affectthe amount) the figures assume an important significance. But ifexpenditures are erroneously applied, if an amount has crept into anexpense account that does not belong there, the comparison had betternot have been made. Thus is seen the necessity of an absolut
Accountancy and business management .. . The fact that a certain expense amountedto last month furnishes no information of special value; butwhen compared with the amount expended for the same purposetwo, three and four months ago (if these expenses are analyzed andcompared with production or sales or whatever factor would affectthe amount) the figures assume an important significance. But ifexpenditures are erroneously applied, if an amount has crept into anexpense account that does not belong there, the comparison had betternot have been made. Thus is seen the necessity of an absolutelyaccurate distribution. Here the chart—the working plan—is again applied to excellentadvantage. The chart. Fig. 7, applied to salary and wage distri-bution, shows to which of the two principal divisions each itemshould be charged. This is the important question—to properlyapply expenses to the commercial and manufacturing of such a chart segregating expenses of each divisionare easily made. 48 ORGANIZATION. i9 40 EXPENSE DISTRIBUTION CHART Corrrmei^lal DEPT. ANDCHV. HEADS CLERKS 1 STENO-GRAPHERS EXPE^aSE 1 TOTAL EXECUTIVE .General Mgr. Comptroller TotM ACCOUNTING Chief Account i>nt C&.shier Billing TotM OFFICE EXPENSE Chief Mailing Filing Tbfs>.l SALES EXPENSE Advertising Mgr. Copy Engrzwvtng Printing Adverttewg 9pi>.ce Sikles Mgr. Siwleamen Ro^d M^il Order House Traveling Expense Postikge Order Recording Packing & Shipping Toti^l CRECMTS » COLLECTIONS 1 Credit M£.n • Reports \ Records ! Collections 1 TOTALCOMMERCIAL EXPENSE ^b«*tsra Fig. 8. This Chart ot Expense Distribution Shows the Amount of Kxecutive and Ad- EXPeNSE DISTRIBUTION CHART-continueo 41 f Manufacturing |g^ T. ANDHEADS CLERKS 1 STENO- 1 1GRAPHERS 1 EXPENSE \ TOTAL BrougrPTt fonvarctiEXECUTIVE i Gener&.l Mgr. \ Comptroller Superintendent Tot 4^1 FACTORY ACCVnG Time &. Pzwy Roll i Records i Cost ?% Totj^l 1 PURCHASING Purc)nakSlng Agent 1
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Keywords: ., bookcentury1900, bookdecade1920, booksubjectaccounting, bookyear1
