48 BULLETIN 1317, U. S. DEPAKTMEXT OF AGEICULTTJBE 
are more clearly separated and the division of operating expenses 
can be more advantageously made. (See Table 32.) 
Salaries and wages. — In compiling the data it was found necessary 
to determine an equitable and uniform method for handling salaries 
of individual proprietors, members of partnerships, and officers of 
corporations, since the widest variations of policy were found in 
connection with accounts charged to salary expense. Basing the 
estimates on wages of meat-cutter salesmen and services required in 
shops of different volume of business, there has been allowed as 
salary to the manager-owner 8 per cent of the first $20,000 of annual 
net sales, 3 per cent of any additional amount up to $50,000, 1 per 
cent of any additional amount up to $100,000. and 0.5 per cent 
beyond $101 1,000. According to this scale, the salary of the manager- 
owner of a shop with sales of 820,000 is $1,600," for a shop with 
sales of $50,000 is $2,500, for sales of $100,000 is $3,000, and for 
sales of $200,000 is $3,500. By inquiry in the trade, these amounts 
were found to be approximately the salaries paid in 1919 for the 
routine work of management of shops of the sizes designated. In 
addition to these amounts, the business usually showed a net profit, 
which may be regarded as compensation for the general capacity 
of the owner in business management and for the risk involved. 
Where members of the family assisted in the work without com- 
pensation an estimate has been made of the value of their services, 
and this amount has been included as wages. In partnerships, one 
salary has been allowed on the percentage basis and a meat-cutter's 
wage of $1,500 has been allowed for each additional partner. 
Salaries of officers and stockholders of corporations were usually 
allowed as recorded in the books, but when the salaries fixed by a 
corporation seemed out of proportion sufficiently to indicate that they 
were not based entirely on services rendered and time devoted to 
the business, the salaries were revised in general conformity with the 
uniform scale. 
Advertising. — Under this account are included the expenses of the 
usual forms of advertising, as newspapers, periodicals, hand bills, 
calendars, and novelties. 
Wrappings. — Under this account are included such items as twine, 
paper, bags, boxes, cartons, skewers, and trays. 
Refrigeration. — This account is charged with all expenses for 
ice and refrigeration, including, as far as obtainable, cost of opera- 
tion of refrigerating machines. Where mechanical refrigeration is 
employed, it is usually impossible to separate the expense for power 
for the ice machine from other power and lighting costs. 
Heat, light, a rd power. — This account is charged with costs of 
heating and lighting store, and for electric power used in operating 
slicing and grinding machines. 
Telephone. — This account requires no explanation. 
Rent. — This account is charged with all rentals paid for use of 
leased store buildings. Where store buildings were owned by the 
business, rent was estimated at prevailing rates. 
Interest. — Interest as an element in cost or operating expenses 
has been the subject of much controversy, and there is considerable 
variance in practice. It is obvious that uniformity must be observed 
if comparisons are to be made. Accordingly, interest on capital bor- 
rowed for the business and an allowance of interest on capital owned 
