Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Using Distribution Costs In Decision Making At The Dennison Manufacturing Company, 1909 To 1949, Gloria Vollmers
Using Distribution Costs In Decision Making At The Dennison Manufacturing Company, 1909 To 1949, Gloria Vollmers
Accounting Historians Journal
Early in the 20th century, predating most academic and practitioner literature, Dennison Manufacturing's top management recognized that certain kinds of distribution costs, normally treated as part of general overhead and allocated based on prime costs, were highly relevant for product-costing and pricing decisions. They pulled as many identifiable direct costs of distribution as possible out of the general overhead pool and assigned them to the appropriate product lines as extra information for the managers of those lines. However, these off-book assignments of costs were not fully understood and caused misunderstandings for many years. New archival evidence allows us to see …
Accounting For Distribution Costs In The Dennison Manufacturing Company During The 1920s And 1930s, Gloria Vollmers
Accounting For Distribution Costs In The Dennison Manufacturing Company During The 1920s And 1930s, Gloria Vollmers
Accounting Historians Journal
This paper suggests that Activity-Based Costing is not a new cost accounting technique but rather one that has been revived as a consequence of difficult economic times. The Dennison Manufacturing Company of Framingham, Massachusetts used accounting techniques throughout their organization that were clearly activity-based. This company's approach to costing distribution or marketing costs in particular is explored here. These costs tend to be ignored today; yet this company, along with others, made a concerted effort to understand these costs and to account for them.