ACCOUNTING RECORDS FOR COUNTRY CREAMERIES. 23 



COST ACCOUNTING. 



In computing costs of operation, the figures shown on the operat- 

 ing statement will be found adequate in most creameries. If the 

 operations of a creamery include the manufacture of cottage cheese, 

 casein, condensed milk, and other by-products, a cost sheet may be 

 arranged which will show the income from these products and the 

 expenses chargeable to them, together with the comparative per- 

 centage ratio of expenses to income. Whether complete cost records 

 are maintained or not, it is advisable that the management keep 

 itself informed as to the comparative cost of operation in the different 

 months, so that leaks or losses due to bad management may be quickly 

 checked up and corrected before results disastrous to the prosperity 

 of the creamery occur. The extent of cost accounting which may be 

 necessary will always depend largely upon the magnitude and 

 diversity of the operations carried on by the organization. 



CONCLUSION. 



In this bulletin are outlined briefly the accounting problems of 

 country creameries and a system of accounts which may be adopted 

 uniformly throughout this field of business. Supplementing the 

 information contained herein, the Office of Markets and Rural 

 Organization is prepared to furnish printers' copy of the various forms 

 comprising the system and in so far as practicable to render assist- 

 ance through its representatives to creameries desiring the installa- 

 tion of the system. 



