Academic literature on the topic 'Charged-sheet method'

"Sales and other revenues 9. Profit and loss accounts and results of operations In fact, there were two charts of accounts: a complete one with ten classes for companies which used cost accounting, and a simplified one without the cost accounting classes (numbers 5, 6 and 7) for others. Due to the integration of cost accounting into the accounting chart, there had to be two formats for the trading account and two for the profit and loss account: one set of state­ ments classifying expenses by destination (functions) for compa­ nies using the cost accounting classes, and another classifying ex­ penses by nature for companies which did not use these classes. The 1942 French Plan was developed on the basis of a docu­ ment prepared by Chezlepretre, a Vichy government senior civil servant within the Ministere de I’lzconomie Nationale et des Fi­ nances, who had been trained as a statistician [Standish, 1990, p. 346]. Chezlepretre had probably drawn up his Plan using the 1937 Goering Plan as a starting point since it had the only official chart of accounts in use at the time. In fact, there are similarities be­ tween the German and the 1942 French charts. In both the German and French charts, cost accounting was integrated with financial accounting. This arrangement of ac­ counts reflected Schmalenbach's conception, in which the chart of accounts follows the cycle of manufacturing activity: first, capital is raised and invested in fixed and current assets; then, materials are purchased and processed to create products that are sold; and lastly, all accounting elements are assembled in class 9 for the periodic closing of the books. However, even if the German and the 1942 French charts of accounts were similar, the French influence had impact in two areas of the 1942 Plan: product costing and the standard balance sheet. The resulting characteristics were later retained in the 1947 Plan. First the latest innovations in French cost accounting were embodied in the 1942 Plan. The homogeneous sections method, developed and defined by Lieutenant-Colonel Rimailho in a 1928 pamphlet under the aegis of the Commission Generale d'Organisation Scientifique du Travail (C.E.G.O.S.), was to be used in computing product costs. This method was concerned with the allocation of indirect charges to product costs. These charges were to be accumulated in various accounting units or sections (such as a division of the enterprise or a specific activity like distribution). Then, section costs were charged to product costs using a chosen work unit (unite d’oeuvre) as basis of allocation (such as kilome­." In Accounting in France (RLE Accounting). Routledge, 2014. http://dx.doi.org/10.4324/9781315871042-41.