Harvard Business Studies, volume 1

Cover Harvard Business Studies, volume 1
Harvard Business Studies, volume 1
Arch Wilkinson Shaw, Melvin Thomas Copeland, Don Lorenzo Stevens
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He lives; but his vitality is low and his life is compara- tively short.
Most people, nevertheless, if they have a choice, prefer two lungs. So the business that wants to be healthy and long-lived prefers some accounting system which is at least sufficient for its needs; Our friend's shoe store, for example, can hardly get along permanently with a system which shows less than these facts: Digitized by Google SCIENTIFIC MANAGEMENT 481 Merchandise — gross sales, cost of goods sold, discounts take
...n on purchases; Expense — buying expenses, selling expenses, delivery expenses, management expenses and fixed charges, losses from bad debts, losses from errors and goods returned.
Buying and selling expenses must include, of course, the salaries of the buying and selling force, extra premiums for selling and an itemized account for advertising. The wise manager deducts from gross sales all returns and allowances, unless those are covered by the factory from which he got his shoes. His cost of goods sold includes purchases at billed prices, with a separate account for discoimts, and it also includes freight and cartage on purchases.


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