INTRODUCTION 11 



a study of the processes of production and of the results, 

 by means of scientific book-J^eeping, is equally essential on 

 the farm as in the factory. ^Experience teaches that the 

 problem of the determinajbionof costs in farming is difficult 

 and complex, more so, probably, than in other industries, 

 but it is, none the less, equally important that it should be 

 examined with the same degree of detail and of thoroughness. 



The object of this preliminary study is to discuss the 

 method, and to show, in certain cases, illustrations of its 

 application. There is, at present, too little agreement 

 among research workers upon questions of principle. In 

 many continental countries and in America, as well as in 

 Britain, many investigations into agricultural costs have 

 been made, 1 and the student cannot fail to be impressed 

 with the fact that whereas, obviously, there can be no 

 uniformity of practice in the technicalities of book-keeping 

 processes in all countries, nor, indeed, is any such necessary, 

 there is unfortunately no consensus of opinion upon vital 

 matters of method and principle, upon which all must 

 be agreed if results reliable in themselves and comparable 

 one with another are to be obtained. Thus, the question 

 at issue at this stage is less the production of costs from 

 which generalizations can be drawn than the prior con- 

 sideration of the determination of points which relate to 

 an exact system of analytical or cost accounting applied to 

 farming. 



Nor is the question under discussion at the moment 

 the consideration of whether such method, or some modifica- 

 tion of it, can be adopted by every farmer. The question of 

 farm accounts in practice is a matter for individual decision, 

 and many men will think, particularly those in a relatively 

 small way of business, that their managerial functions can 

 be exercised most profitably exclusively in the field. In 

 other industries it has been the experience of managers 

 that it is economical to introduce methods of control which, 

 in themselves, appear to add to the cost of production, 

 and many of those who have made it their business to study 



1 See Bibliography, p. 116. 



