‘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 suc- 
cessfully 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 ac- 
counting generally, among which are the following: 
(a) Shows the danger line below which goods cannot be sold at a profit; thus serving as an in- 
surer of profits. 
(b) Acts as a guide to the value, efficiency, and waste of workers, machines, methods, opera- 
tions, 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 prede- 
termined, 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, in- 
cluding melting, handling, and preparation of scrap, furnace maintenance and repairs, connected with the fur- 
naces 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 re- 
ceiving the metal at the furnace spout. All items of cost incurred within these limits are charged to the Melt- 
ing’ 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 fin- 
ished 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 con- 
sidered 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.