THE SHOP-ORDER SYSTEM OF ACCOUNTS. 34 3. 



selling price of the stove may be known almost as well before it 

 i> made as afterward. The advantage of this is apparent. 



In a foundry such as has been described, the use of the service 

 cards might be confined to pattern makers, and to a few other 

 employees whose time is distributed among special orders. 



General labor constantly engaged on standing orders might 

 be cared for by the usual methods of time keeping, and piece 

 workers by the means described. 



Charges for material purchased might be made in bulk, on 

 the principles set forth, from the bills received from dealers ; and 

 transfers of charges by foremen be also by values in bulk. Or 

 charges for material entering into the cost factor might be made 

 annually, as shown by item (e) in the following statement. 



Dr. Cr. 



On hand per last inventory a 



Procured since last inventory b 



On hand per present inventory c 



Accounted for by direct charges to fabrications since last 

 inventory, made out from drawings or specifications, 



p. 28 d 



Balance charged to proper departmental standing order e 



Experience only could tell how much detail it would pay to- 

 neglect. 



EXTRACTS FROM DISCUSSION. 



Mr. F. W. Taylor. I have read with very great interest Mr. 

 Metcalfe's paper, as we at the Midvale Steel Company have had 

 the experience, during the past ten years, of organizing a system 

 very similar to that of Mr. Metcalfe. The chief idea in our 

 system, as in his, is, that the authority for doing all kinds of 

 work should proceed from one central office to the various 

 departments, and that there proper records should be kept of 

 the work and reports made daily to the central office, so that the 

 superintending department should be kept thoroughly informed 

 as to what is taking place throughout the works, and at the 

 same time no work could be done in the works without proper 

 authority. The details of the system have been very largely 



