The Eighteenth‐Century Origins of Cost Accounting

Abstract

A discussion of the important description of a manufacturer's costing and management accounting system which an eighteenth-century Scottish academic, Robert Hamilton (1743-1829), gives in his book, An Introduction to Merchandize (1777/9). Hamilton's system is considered in the context of the economic developments which were taking place, contemporary practice and the works of other writers.

Calculating profit: A historical perspective on the development of capitalism

“…For Bryer, the company uses DEB to calculate the Ôfeudal rate of returnÕ since there is no apparent allowance for depreciation (Bryer, 2000a, p.146). 26 Mepham (1988, p.62 citing Scott, 1905 suggests that Sir James Stansfield computed forecasted profit in order to compare to the legal rate of interest. However there is no evidence in Scott of such calculations carried out by Stansfield and the only example is ScottÕs own calculation of profits in excess of 25% (Scott, 1905, p.lvii) before deductions for the legal rate of interest on capital based on information from the prospectus (Memoriall).…”

A Longitudinal Case Study of Profitability Reporting in a Bank

“…Accounting historians have explored the development of cost accounting, standard costing and budgeting in various organizations (Solomons, 1968;De Roover, 1968;Miller & O'Leary, 1987;Mepham, 1988;Hoskin & Macve, 1988;Hoong, 1989;Hopper & Armstrong, 1991;Fleischman et al, 1995). From these studies it appears that a management accounting system's historical, social and organizational contexts are major influences on its design.…”

“…There is, however, evidence of much earlier developments in cost accounting that were not generally adopted at that time (De Roover, 1968;Mepham, 1988;Hoong, 1989). Solomons (1968) suggests that the main impetus to developments in the nineteenth century was the increase in competition, such as in the engineering industry in the second half of the nineteenth century.…”

Accounting and management discourse in proto-industrial settings: the Venice Arsenal in the turn of the 16th century

“…developments in accounting history (and the New Second, it allows for an understanding of the Accounting History) 1s the tracing back of the evolution of accounting discourse over time: in the emergence of meaningful particularly forms of particular time span under investigation modern managerial control some decades back-( 1580-1643) the growth of new concepts and no-1992; Mepham, 1988;Fleischman and Parker, coming what it was not', as put by Hopwood, 1991;Edwards and Boyns, 1992;Bhimani, 19g4;1987: 207), together with an ability to talk about wards, in the 18th century (e-g. 7 Hopwood, 19877 tions can clearly be picked out ('accounting be- Scorgie, 1997;Fleischman and Maeve, 2002)). This look into early examples can change our mind managing issues through newly developed accounting concepts (for instance, as we will see, the about what constitutes 'modern' aspects, affecting only current day management and accounting practices (Parker, 198 1 ;Zan, 2001 ;Carnegie and Napier, 2002).…”