1 909.] 



Farm Accounts. 



461 



Manufacturers fully appreciate this, and those who produce 

 a variety of wares keep cost books, in which each class of 

 stock produced is debited with— 



(1) Cost of all materials used; 



(2) Wages paid to workmen ; 



(3) A proper proportion for rent, supervision, interest on 

 capital, and profit. 



By this means the manufacturer learns the exact cost of his 

 wares, knowledge which is essential to him if he is to con- 

 duct his business successfully. Knowledge of the exact cost 

 of producing the things he sells would be just as -useful to 

 a farmer, and can be obtained by him in a similar manner, 

 though not with quite the same degree of accuracy because 

 of the influence which the departments have upon each other. 

 For example, the action of some purchased manures, as well 

 as dung, extends over several years, and benefits many crops, 

 and it is difficult to fix the amount which should be charged 

 to the crops of a particular year; while in the case of foods 

 the total cost cannot be charged to the stock which consume 

 them, for crops benefit from their manurial residues. These 

 difficulties, however, can be overcome, but the amount of 

 clerical labour it involves is apparently more than many 

 farmers are inclined to devote to it, though there can be little 

 doubt that it would be greatly to their advantage to adopt 

 such a system. Very few farmers at the present time attempt 

 it, and we have frequently had the remark made to us by 

 a farmer that a particular branch of his business— say, milk 

 production — was probably far more profitable than others in 

 which he engaged, and might with advantage be extended, 

 but that he had no means of knowing the fact definitely, and 

 was deterred from attempting such a system of accounts as 

 would enlighten him, by its complexity and the amount of 

 time and labour it required. 



The two systems of accounts described in this article- fur- 

 nish the actual profit or loss on the whole of the farming 

 business for the year; they also supply data from which, 

 with a little trouble, a rough approximation to the profit or 

 loss on the various departments may be obtained. Either of 

 them may be extended so as to yield a return of the actual 

 profit or loss on the different branches. For this purpose 



