Cost accounting for small and medium-sized print shops

Purpose: It was the purpose of this study to present reasons and benefits of a job cost system in the smell and medium-sized weekly field, and to present and explain a suggested system that the small printer or publisher could duplicate and use easily. Methods: Information for this study was obtained by personal interview with printers and publishers in Montgomery, Madison, Walker, and Trinity counties in East Texas and from books, magazines, and newspapers in the Estill Library at Sam Houston State Teachers College and the personal library of the writer. Findings: The planning of a study of cost accounting methods. Three areas of cost accounting were discussed. These were: actual cost accounting, budgeted cost accounting (both fixed and flexible), and standard cost accounting. The various statements were discussed in their role as tools of management. A number of ratios were introduced and discussed. The need of a cost accounting system for small and medium-sized weekly newspapers were discussed. Many printers accepted the Franklin Printing Catalog price list in lieu of a cost system. The fallacy of such acceptance was explained. The use of the Catalog was explained and the use of it in conjunction with the actual cost accounting system was described. This study should acquaint the accountant with the needs of the printing industry and should acquaint printing management with the benefits to be derived rom an accurate and workable cost accounting system. Conclusion: The information in this study indicates that the following conclusions seems to be in order: 1. A cost system is a tool efficient management and should produce the following information: a. The total cost of operating for a period of time broken down into the cost per hour of each element in the plant. b. The overhead charges should be grouped according to departments or operations. c. The above information will disclose variances between actual costs and standard costs between actual costs and budgeted costs. d. The ordinary financial statements show results of the operations and financial conditions. 2. Three items make up the cost of the finished job: a. Direct labor b. Direct martials c. Manufacturing expenses, also known as burden or overhead. 3. A simple job cost system may be based on five simple records: a. Job register b. Job ticket envelope c. Daily time ticket d. Perpetual stock inventory card e. Summary of cost