management, and its type of production seem important. Among the external ones, the legal environment, the level of technology used, the scarcity (or abundance) of capital, etc.. . . For future research in this area, there remains plenty of work on hand and the firms’ archives have not divulged all of their secrets. The double entry bookkeeping system has been established since the time (14th and 15th century) when it was indispensable to the merchants; the industrial cost accounting system became established at the same time as the Industrial Revolution, the be­ ginning of the 19th century in France. The regulation of account­ ing standards developed gradually with the growing intervention of governments in the capital accumulation process (between the two World Wars). Future research should consider the relation­ ship between the dominating capital accumulation procedures (commercial, industrial or social) and the dominating accounting systems of a period. Perhaps dominating capital accumulation procedures determine the way firms compete, which in turn deter­ mines their need for information, and therefore their accounting system.

2014 ◽  
pp. 268-335
Keyword(s):  
Capital Accumulation ◽  
Industrial Revolution ◽  
Future Research ◽  
Accounting System ◽  
Accumulation Process ◽  
Accounting Systems ◽  
15Th Century ◽  
Cost Accounting System ◽  
Double Entry ◽  
The 19Th Century

of the information given to the shareholders, precautions to take for upward appraisal of capital assets, choice of an investment, and dividend policy. In order to raise enough capital for its business, the Company had to inform a growing number of shareholders, which soon became inconsistent with the managers’ freedom to deal with ac­ counting information according to their own needs. The resoultion of this problem led to the distinction between standard­ ized financial accounting for external and management account­ ing for internal use. As it became more and more efficient and advanced, the accounting system led to its own splitting. CONCLUSION Compared to most of the firms, Saint-Gobain had to face very early (in the first half of the 19th century) the problems raised by the setting up of a management accounting system. However, it was not until 1820, 155 years after its creation, that it adopted double entry bookkeeping which included the calculation of costs. This evolution is mainly due to the spreading of the Industrial Revolution in France, which was responsible for the abolition of privileges and the growth of competition in the field of glass pro­ duction. During the period 1820-1880, the cost accounting system had been gradually improved, without any regular outside coercion, according to the needs of the management alone. This leads to two conclusions and two research questions. In 1880, the accounting system facilitated the reckoning of full costs with methods and procedures that are still in use (alloca­ tion of the overhead with the use of activity center accounts, up-to-date transfer pricing methods, analysis of the relationship be­ tween depreciation, dividends and investments, etc ). This full cost method is now over one hundred years old. The development and the mastering of that cost accounting system were absolutely necessary to start the next stage, that is to say the use of those costs to prepare estimates of costs and investments. That stage took place over four decades (1890 to 1930) and led to real budget control towards the end of the Second World War. It should be recognized that the accounting systems of a given period can be very different from one another, which is particu­ larly true in the 19th century, therefore research should look at the variables on which the accounting system of each firm depends. Among the internal ones, the size of the firm, the culture of its

2014 ◽  
pp. 267-267
Keyword(s):  
19Th Century ◽  
Industrial Revolution ◽  
Transfer Pricing ◽  
Cost Accounting ◽  
Accounting System ◽  
Accounting Systems ◽  
Cost Accounting System ◽  
The Cost ◽  
Double Entry ◽  
The 19Th Century

scholarly journals PRIVATIZATION AND MANAGEMENT ACCOUNTING SYSTEMS CHANGE: THE CASE OF THE 19TH CENTURY SPANISH TOBACCO MONOPOLY

2002 ◽  
Vol 29 (2) ◽  
pp. 31-57 ◽  
Author(s):  
Marta Macías
Keyword(s):  
Private Sector ◽  
The State ◽  
Accounting System ◽  
Accounting Systems ◽  
Explanatory Factors ◽  
Management Accounting Systems ◽  
Double Entry ◽  
The 19Th Century ◽  
Tobacco Monopoly

This paper examines changes to the accounting system of the Spanish tobacco monopoly in 1887, following the decision by the state to lease the publicly owned and state-run monopoly to a private-sector company. The switch to private-sector management generated a fundamental change in the demands made of the accounting system. As a result, double-entry bookkeeping and a new method of calculating costs were implemented. The paper discusses the motives behind the design of the new accounting system and its consequences using the framework provided by agency theory. It highlights the need to consider the role of the capital structure of the firm and the state as explanatory factors for both the parameters and uses of cost accounting information.

SETTING UP AN INDUSTRIAL ACCOUNTING SYSTEM AT SAINT-GOBAIN (1820–1880)

1990 ◽  
Vol 17 (2) ◽  
pp. 73-93 ◽  
Author(s):  
Marc Nikitin
Keyword(s):  
Board Of Directors ◽  
Industrial Revolution ◽  
Cost Accounting ◽  
Accounting System ◽  
Full Cost ◽  
The Board Of Directors ◽  
Double Entry

In 1820, the Manufacture Royale des Glaces, founded in 1665 and also named Compagnie de Saint-Gobain, opted for double entry bookkeeping and cost accounting. At that time, both economic (industrial revolution) and juridical (abolition of the privileges and emergence of competition) events explain that change of accounting methods. From 1820 to 1880, the accounting system was progressively improved; most of today's cost accounting problems were discussed by the Board of Directors and in 1880 the accounting system was already very similar to today's full cost method.

Khipu

Paid ◽  
2017 ◽  
Author(s):  
Gary Urton
Keyword(s):  
Data Storage ◽  
Accounting System ◽  
Accounting Systems ◽  
Numbering System ◽  
Record Keeping ◽  
Similar Information ◽  
History Of ◽  
Double Entry

Khipu are sets of knotted strings used by the pre-Colombian Inkan Empire for record keeping. The chapter situates khipu in the history of accounting systems globally, and makes a case that some khipu may have conveyed similar information as double-entry bookkeeping, developed around the same time in Europe. Khipu cords were made from spun or plied cotton or llama or alpaca fibers and display three types of knots organized in complex arrangements of tiered clusters. Cords were spun with separate strings in specific patterns, too, allowing for a great deal of data storage. The Inka did not possess writing but used this accounting system and a decimal numbering system conveyed through knots to administer the empire. Double-entry bookkeeping in Europe contributed to the rise of capitalism; that double-entry khipu did not may be attributable to the Inka’s conquest by Spain in 1532.

ing if one remembers that the Industrial Revolution started in France a few decades after England. But several authors [Levy-Leboyer, 1968; Asselain, 1984; and Keyder & O'Brien, 1978] ex­ plain that the French economy always kept up with technological progress in Great-Britain. A massive deceleration in the economy occurred between 1790 and 1810; the French industrial produc­ tion, which was probably equivalent in volume to the English one in 1790, was reduced to a much lower level in 1810. However, a new start occurred after 1810 and the two countries had parallel industrial growths all through the 19th century. Cost accounting systems may have appeared around the turn of and after the 15 th century in Europe [Gamer, 1954]. They actually spread to most firms during the industrial revolution in the 19th century; first in England, then in France, then in the USA, and in Germany. The aim of the present article is to describe the creation and development of such an industrial accounting system at Cie Saint-Gobain. This paper discusses the development of accounting by this very old company (created in 1665) between 1820, when it abandoned single entry bookkeeping, and 1880, when it achieved a full cost system. When examining the archives, this researcher saw no evidence that the textbooks mentioned above were read by anyone at Saint-Gobain. HISTORICAL BACKGROUND OF SAINT-GOBAIN: THE ROYAL MANUFACTURE AND THE PRIVILEGE Instead of continuing to buy glass from Venice, which was too much for the finances of the French kingdom, Colbert encouraged the foundation of a Manufacture Royale des Glaces, established in Rue Reuilly in Paris. The creation and development of the Com­ pany resulted from privileges granted by the monarch to business­ men successively in 1665, 1683, 1688, 1695, 1702, 1757 and 1785. Those privileges made the firm a hybrid one, depending both on public and private laws; on the one hand it had a privilege and on the other hand the legal statutes of a limited Company [Pris, 1973, p. 26]. Having a privilege meant industrial, commercial, fiscal, ad­ ministrative, juridical and financial advantages such as exemption of taxes, free circulation for goods bought and sold, and a prohibi­ tion for anyone to sell the same kind of product. Saint-Gobain was therefore protected from possible rivals and all those years of 194

2014 ◽  
pp. 250-250
Keyword(s):  
19Th Century ◽  
Industrial Revolution ◽  
Historical Background ◽  
Public And Private ◽  
Accounting Systems ◽  
French Economy ◽  
Single Entry ◽  
The Creation ◽  
The One ◽  
The 19Th Century

scholarly journals Double entry bookkeeping vs single entry bookkeeping

2016 ◽  
Vol 73 (2) ◽  
pp. 282
Author(s):  
Ileana Andreica
Keyword(s):  
Financial Management ◽  
Comparison Method ◽  
Accounting System ◽  
Accounting Systems ◽  
Legal Personality ◽  
Advantages And Disadvantages ◽  
Family Enterprises ◽  
Hypothetical Data ◽  
Single Entry ◽  
Double Entry

Abstract: A financial management eficiently begin, primarily, with an accounting record kept in the best possible conditions, this being conditioned on the adoption of a uniform forms, rational, clear and simple accounting. Throughout history, there have been known two forms of accounting: the simple and double entry. Romanian society after 1990 underwent a substantial change in social structure, the sector on which put a great emphasis being private, that of small manufacturers, peddler, freelance, who work independently and authorized or as associative form (family enterprises, various associations (owners, tenants, etc.), liberal professions, etc.). They are obliged to keep a simple bookkeeping, because they have no juridical personality. Companies with legal personality are required to keep double entry bookkeeping; therefore, knowledge and border demarcation between the two forms of organisation of accounting is an essential. The material used for this work is mainly represented by the financial and accounting documents, by the analysis of the economic, by legislative updated sources, and as the method was used the comparison method, using hypothetical data, in case of an authorized individual and a legal entity. Based on the chosen material, an authorized individual (who perform single entry accounting system) and a juridical entity (who perform double entry accounting system) were selected comparative case studies, using hypothetical data, were analysed advantages and disadvantages in term of fiscal, if using two accounting systems, then were highlighted some conclusion that result.

scholarly journals Organ building in Lithuania in the 19th century

Menotyra ◽  
2019 ◽  
Vol 26 (3) ◽  
Author(s):  
Rimantas Gučas
Keyword(s):  
19Th Century ◽  
Catholic Church ◽  
Industrial Revolution ◽  
Organ Building ◽  
15Th Century ◽  
Long Time ◽  
Vilnius University ◽  
The Russian Empire ◽  
The Baltic ◽  
The 19Th Century

For Lithuania, the 19th century was marked by the symbol of the Russian Empire – Lithuania became a province of a foreign empire. Farming suffered a severe general downturn. As the Church’s powers began to be restricted, there was almost no opportunity for new significant instruments to emerge. The monasteries, which until then had been the initiators of the best organ building, were closed. Eastern Catholic (Unitarian) churches, which also had organs in Lithuania, became part of the Russian Orthodox Church, and the organs were ordered to be liquidated. The Catholic Church itself, unlike evangelicals, also had little regard for music and especially for organ matters. From the beginning of the 15th century, the development of Lithuanian organ culture was closely associated with Königsberg. Once the import customs were imposed, significant contacts which had taken place almost disappeared. The industrial revolution in Lithuania was delayed, and for half a century small artisan workshops still prevailed. Almost exclusively small, single-manual organs without pedals or positives were built. A large three-manual organ at Vilnius University St John’s Church was rather an exception. It was built by the Tiedemanns. This family, which originated in East Prussia, worked in the Baltic States throughout the first half of the 19th century. Only in the middle of the century did the new European organ building trend, the so-called organ romanticism, reach Lithuania. A particularly important role in this period was played by the experience of organ building of the neighbouring Curonia. Very few impressive examples were created, and in this respect Lithuania is hardly able to compete with the major countries of Central Europe. Lithuania is characterized by the fact that in the 19th century local masters and companies ( J. Rudavičius, M. Masalskis, F. Ostromensky), as well as masters from neighbouring Curonia (Herrmann, Weissenborn) and Poland (Blomberg) worked there. In western Lithuania, then part of Prussia, Terletzki was active. Meanwhile, large factories (Walcker, Rieger) reached Lithuania only in the first half of the twentieth century and only in a few instances. At that time, more work started to be focusing on the construction of two-manual with pedal instruments. At the end of the century, J. Rudavicius built some three-manual organs. His 63-stop organ built in 1896 for a long time was the largest in Lithuania. Although the 19th century Lithuanian organs are relatively modest compared to other countries, they have the value that is only growing in the context of present-day Europe, since the “progressive ideology” of more economically powerful European countries affected the art of organ building and few small romantic instruments are left.

scholarly journals The Theoretical Substantiation of Cost Accounting in the Light of Conflicting Approaches (English version)

2006 ◽  
Vol 2 (3) ◽  
pp. 124
Author(s):  
Marcell Schweitzer
Keyword(s):  
Cost Accounting ◽  
Steering System ◽  
Separation Theorems ◽  
Accounting System ◽  
Accounting Systems ◽  
Theoretical Substantiation ◽  
Income Statement ◽  
Definition Of ◽  
Cost Accounting System ◽  
Income Accounting

In Germany, a discussion has been in progress for a number of years on the theoretical substantiation and the necessity of an independent cost accounting system. The spectrum of views involved ranges from a complete integration of cost accounting (internal income statement) into the profit and loss statement (external income statement) to as complete a separation as possible of the two income accounting systems. This contribution will represent, from a German standpoint, how the discussion has developed, and what its present state is.The conclusion of this contribution is a recommendation of a theoretically substantiated separation of the two types of income statements.The contribution pursues several different purposes:(a) an identification of the historical roots of the theoretical basis of cost accounting,(b) an account of the problem field of the firm and its structures,(c) a definition of the position of separations and separation theorems,(d) an analysis of perspectives of investigation of a theoretical substantiation,(e) a methodical orientation of cost accounting by the planning and steering system,(f) an account and appreciation of recent contributions on the theoretical substantiation,(g) a theoretical substantiation of an independent cost accounting system.

EARLY COST ACCOUNTING PRACTICES AND PRIVATE OWNERSHIP: THE SILK FACTORY COMPANY OF PORTUGAL, 1745–1747

2007 ◽  
Vol 34 (1) ◽  
pp. 57-89 ◽  
Author(s):  
José Matos Carvalho ◽  
Lúcia Lima Rodrigues ◽  
Russell Craig
Keyword(s):  
Industrial Revolution ◽  
Production Control ◽  
18Th Century ◽  
Cost Accounting ◽  
Management Control ◽  
Financial Accounting ◽  
Accounting Systems ◽  
Product Costing ◽  
Double Entry ◽  
Political Economic

This paper contributes to an understanding of the historical development of management accounting by presenting an example of cost accounting practice in Portugal in the first half of the 18th century. It explores the integration of cost and financial accounting systems within a double-entry accounting framework by the Silk Factory Company (SFC) between 1745 and 1747. The SFC's methods of product costing, pricing, inventory accounting, expense recognition, and production control are reviewed within the political, economic, and social context of Portugal at the time. The SFC is revealed to have used job-order product costing, with allocations of overhead costs, allowances for wastage and shrinkage, and elements of rudimentary standard costing. Our findings provide evidence of the existence of cost accounting and management control techniques at a private rather than a state-owned enterprise prior to the industrial revolution.

scholarly journals Activity-based costing on the example of prune-drying company

2014 ◽  
Vol 59 (3) ◽  
pp. 363-373
Author(s):  
Nikola Popovic ◽  
Marina Vasilic
Keyword(s):  
Indirect Costs ◽  
Cost Accounting ◽  
Production Costs ◽  
Quality Data ◽  
Accounting System ◽  
Activity Based Costing ◽  
Accounting Systems ◽  
Business Decision ◽  
Modern Approach ◽  
Cost Accounting System

This paper examines the possibility of application of the activity-based costing in a company engaged in drying fruit. Activity Based Costing (ABC) was developed due to the shortcomings of traditional cost accounting systems, which was shown to have serious limitations, on one hand, and due to the need for more accurate cost price, on the other. This is of great importance for business decision making, which requires quality data and information, because the intense technical and technological progress has significantly altered the environment companies operate in. Along with this fact, major changes in cost structure occurred, which reflected through the increase of the indirect cost portion, and decrease of direct labor and material costs. Traditional cost accounting methods allocate indirect production costs using keys which are no longer appropriate for the new circumstances, and therefore typically allocate unreasonably high amount of indirect costs to those products which are produced in larger series. ABC cost accounting system firstly allocates indirect costs to pre-defined activities, and afterwards carries them to cost and profit drivers. The application of ABC costing in Serbia is at the very beginning. Having in mind that the privatization and the restructuring phase in the economy is followed by the establishment of a new management with fresh ideas, this can be a good timing for companies to introduce modern approach and modern methods of cost accounting. ABC method is very convenient for application in service companies, food processing industry, confectionery companies, driers, sugar refineries, breweries, dairies, mills etc.

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