WHAT COST-ACCOUNTING TELLS 



9. What is the net profit from a 40-deg. house as com- 

 pared with that from a 50-deg. house ? Should we 

 make a change in some houses ? 



How can correct answers to such questions be given un- 

 less one knows, in each case, the costs involved ? 



EQUIPMENT FOR COST-FIXDING 



The stationery needed for the records are essentially 

 a good ledger and a sharp pencil. Additional materials, 

 such as cards, a desk adding machine, etc., may be used 

 for convenience. 



The time required for entries (please note this, Mr. 

 Busy Grower) is about fii'c niiniites per day . Every now 

 and then the books are gone over, usually some evening, 

 and summaries and deductions are made. 



We run an account (double column) with each of the 

 following, those marked (*) being especially important 

 in our particular line ot work: 



Real Estate (land and buildings)'"*' Manures (includes fertilizers) 



Labor* Interest 



Heat* Miscellaneous supplies* 



Auto truck Office expense 



Horse General expense* 



House (personal) Crop accounts (here omitted)* 



Tools and equipment* Minor crops (one account) 



A work report or record of how time is spent (as de- 

 scribed farther on) is also kept. 



Such external accounts as Capital, Notes Receivable, 

 Notes Payable, Accounts with Customers, etc., belong to 

 bookkeeping proper, and will not be treated in this article. 

 There is no harm in keeping everything that I shall dis- 

 cuss in one large book, if one so desires. We do not keep 

 a cash account; we do not usually make double entries; 

 we de not stay up until 2 a.m. endeavoring to locate 

 "that 13c. excess on the debit side." Our books do not 



