‘4. Tends to make the manufacturer, who otherwise would fail to see the advantages of good cost
accounting, convinced of the desirability of adopting the methods which his competitors are successfully
 using.
‘s. Reveals lines of individual products which have been marketed on an unprofitable basis.
“6. Provides in addition to the above specific reasons, all of the valuable features of good cost accounting
 generally, among which are the following:
(a) Shows the danger line below which goods cannot be sold at a profit; thus serving as an insurer
 of profits.
(b) Acts as a guide to the value, efficiency, and waste of workers, machines, methods, operations,
 and entire plants.
(c) Provides a reliable guide and basis for estimating the cost of prospective business.
{d) Furnishes current reports for comparing major cost items with standards which are predetermined,
 and thereby measures and increases operating efficiency.”

COST DIVISIONS OF THE FOUNDRY

The Melting Department includes the cost of metals and the conversion cost. It controls all labor, including
 melting, handling, and preparation of scrap, furnace maintenance and repairs, connected with the furnaces
 and with the ladles used for receiving the metal from the furnace spout; and the consumption of all
materials and supplies used in conjunction therewith. Its province commences with the melting stock and
fuel at the storage point and ends at the point where the metal is poured into or from the ladle used for receiving
 the metal at the furnace spout. All items of cost incurred within these limits are charged to the Melting’
 Department.

The Molding Department controls all the labor of molding, the maintenance of equipment, and the
consumption of all materials and supplies used in conjunction therewith, Its province commences with the
materials entering into molding sand mixtures at their point of storage and with the pouring of the metal
into or from the ladle used for receiving the metal at the furnace spout. Its province ends with the delivery
of the castings to the Cleaning Department. All items of cost incurred within these limits are charged to the
Molding Department. It is important that the direct molding labor be segregated in a separate account in the
Molding: Department.

The Coremaking Department controls all the labor of coremaking, the maintenance of equipment, and
the consumption of all materials and supplies used in conjunction therewith. Its province commences with
the materials entering into core sand mixtures at their point of storage, and ends with the delivery of the finished
 cores to the Molding Department. All items of cost incurred within these limits are charged to the
Core Department. It is important that the direct cofemaking labor be segregated in a separate account in the
Core Department.

The Cleaning and Finishing Department controls all the labor of cleaning and finishing castings, the
maintenance of equipment, and the consumption of all materials and supplies used in conjunction therewith.
[ts province commences with the receipt of the castings from the molding department or pouring floor, and
ends with the delivery of them to the shipping department. All items of cost incurred within these limits are
charged to the Cleaning Department with the exception of annealing or heat-treating cost which may be considered
 separately. It is important that the direct cleaning labor be segregated separately from the other ac-;ounts
 in the Cleaning Department.

The Heat Treating Department controls all the labor in connection with the annealing normalizing
and other methods of heat-treating castings, the maintenance of equipment, and the consenptin of all mate.
rials and supplies used in conjunction therewith. All items of cost incurred in the heat-treatment of castings
are charged to the Heat Treating Department.