COST ACCOUNTING 285 



feed (in case of livestock), depreciation of equipment and 

 buildings, rent or interest on investment. He ought to 

 keep a comparative inventory record also. He could get 

 along without a feed record, a labor record, or a horse labor 

 record. 



If one operated under such a curtailed cost system it 

 would mean that he would make practically the same en- 

 tries in the cash journal and in the ledger, and that the 

 closing entries would be the same in principle as under the 

 more detailed system. The saving of time would come in 

 the omission of some of the subsidiary records. For in- 

 stance, feed and fertilizer, labor and horse labor would 

 be distributed to the several livestock and field accounts 

 at a reasonable estimated. value. All labor could be charged 

 to Labor account as usual, and at the close of the year the 

 total labor could be distributed over the farm elements 

 more or less arbitrarily, based on experience or observa- 

 tion. Such distribution, however, would require an entry 

 crediting Labor account and debiting the several farm ele- 

 ments. The same method could be followed in connection 

 with horse labor. 



Feed consumed by livestock could be estimated or an 

 occasional test could be made to form the basis for an 

 entry at the close of the year debiting the severalflivestock 

 accounts and crediting the several crop accounts. The 

 total depreciation on equipment could be distributed over 

 the various farm elements on the same basis used for horse 

 labor. Other charges could be made by estimate, following 

 the same general plan. 



Obviously, any results obtained under such an abbrevi- 

 ated cost system could not be considered as showing the 

 results to the best advantage. Estimates made on such a 

 large scale are subject to errors. If one intends to use 

 such a system involving estimates so largely, it would be 

 much better if he would keep all of the detailed records for 



