Abstract
After studying this chapter, you should be able to:
-
describe the materials control procedure;
-
calculate the cost of stores issues and closing stock value using FIFO, LIFO and average cost;
-
explain the arguments for and against using FIFO, LIFO, average cost, replacement cost and standard cost methods of stores pricing;
-
distinguish between labour cost accounting and payroll accounting;
-
explain the accounting treatment of stores losses, transportation and material handling costs, holiday pay, overtime premiums, employment costs and idle time.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References and Further Reading
Accounting Standards Committee (1988) Accounting for Stocks and Work in Progress (SSAP 9).
Bastable, C.W. and Merriwether, J.D. (1975) FIFO in an inflationary environment, Journal of Accountancy (USA), March, 49–56.
Biddle, G.C. (1981) Accounting methods and management decisions: the case of inventory costing and inventory policy, Journal of Accounting Research: Studies on Economic Consequences of Financial and Managerial Accounting: Effects on Corporate Incentive and Decisions.
Copeland, R.M. and Shank, J.L. (1971) LIFO and the diffusion of innovation, Journal of Accounting Research Selected Studies, 196–230.
Copeland, R.M., Wojdak, J.F. and Shank, J.K. (1971) Use LIFO to offset inflation, Harvard Business Review, May—June, 91–100.
Dangerfield, B.C. and Stephenson, E. (1973) Stock valuation in the consumer durables manufacturing industry, Accounting and Business Research, Winter, 2–13.
Davis, H.Z. (1981) The effects of LIFO inventory costing on resource allocation: A comment, Accounting Review, LVI, October, 975–6.
Derstine, R.P. and Huefner, R.J. (1974) LIFO—FIFO, Accounting ratios and market risk, Journal of Accounting Research, 12 (2), 216–34.
Dopuch, N. and Ronen, J. (1973) The effects of alternative inventory valuation methods — An experimental study, Journal of Accounting Research, 11(2), Autumn, 191–211.
Drury, C., Braund, S., Osborne, P. and Tayles, M. (1992) A survey of management accounting practices in UK Manufacturing Companies, ACCA Research Occasional Paper, Chartered Association of Certified Accountants.
Halperin, R. (1977) The effects of LIFO inventory costing on resource allocation: A public policy perspective, Accounting Review, LIV, January, 58–71.
Lockyer, K.G. (1982) Production Management,Pitman.
Lucy, T. (1984) Costing, DP Publications, Chs 4–8.
Maskell, B. (1986) Just-in-time manufacturing, Management Accounting, July/August, 26–8.
Schonberger, R.J. and Ansarii, A. (1984) Just-in-time purchasing can improve quality, Journal of Purchasing and Materials Management, Spring, pp. 2–6.
Sunder, S. (1976) Optimal choice between FIFO and LIFO, Journal of Accounting Research, 14(2), Autumn, 277–300.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1992 J.C. Drury
About this chapter
Cite this chapter
Drury, C. (1992). Accounting for materials and labour. In: Management and Cost Accounting. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-6828-9_3
Download citation
DOI: https://doi.org/10.1007/978-1-4899-6828-9_3
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-412-46390-7
Online ISBN: 978-1-4899-6828-9
eBook Packages: Springer Book Archive