INTRODUCTION
The subject of cost accounting is frequently considered by some to be beyond their power to compre-
hend, although it involves nothing mysterious and it can be readily understood by those not familiar with
accounting theory and procedure. Cost accounting is really nothing more than the adaptation of common
sense in a systematized manner for the purpose of providing facts and figures for use as guides in efficient
management.
The purpose here is to outline a standard cost finding system for steel foundries, in a manner that
makes it easily understood by the practical foundryman. The language of the cost accountant has been con-
verted so far as possible into every-day language, thereby eliminating terms and expressions which sometimes
cause difficulty in understanding the principles of cost accounting. Every foundry executive should pos-
sess knowledoe of these principles for application to his business.
Due to the enormous capacity of the foundry industry, a very keen competitive condition exists. Hence,
‘he concerns that are to prosper will be those who have an intimate knowledge of the cost of doing business.
ind who use cost finding methods accepted as uniform in their industry. Uniformity in cost finding meth-
sds among members of an industry such as the steel casting industry is without any question very beneficial
in promoting intelligent trade practices.
The uniform cost system in this pamphlet is the result of much intensive study given to the subject
»f steel foundry cost accounting by the members of the Steel Founders’ Society of America. This organi-
zation of companies manufacturing steel castings has been interested in proper cost accounting principles for
‘he steel foundry industry, during a period of more than twenty years. The first uniform cost system in the
‘oundry industry was, so far as we have been able to determine, published by the Steel Founders’ Society of
America in 1005. That early foundry cost system was about the same in principle as the foundry cost sys-
ems which appeared later in numerous publications. In 1919, another uniform cost system embodying a
greater amount of experience with steel foundry costs, was published by the Steel Founders’ Society of
America. This differed from the original cost system as the experience warranted the changes made in it.
During all these years, this organization has devoted much time and effort to the subject, and this publication
is issued to promote the use of uniform cost accounting principles in the steel foundry industry.
November, 1927.
STEEL FOUNDERS’ SOCIETY OF AMERICA,
511 Magee Building,
Pittsburgh, Pa.
