The cost accounting system with its operating accounts must corresponds to the organizational division of authority so that the individual manger can be held accountable for the cost of incurred in each department. The concept of authority and responsibility and closely allied with the accountability which recognized the need of measuring a mangers discharge of responsibilities. The organization charts on pages 6 and 7 depict and authority the responsibility relationship between mangers superintendent and department heads who are responsible for:

1. Providing detailed information needed by the accounting department in order to install a successful system.

2. Incurring expenditure for material labor and other costs which the accountant must segregate and report to those in charge.

While details for analyzing and reporting may be different for the different business each system should be perfected in manner hat will:

1. Aid in planning the future and controlling the present.

2. Provide a means of costing inventories.

3. Computer the cost of sales

4. Measure the efficiency of employees material and machines.

5. Aid in establishing selling prices.

6. furnish data for various other analytical processes.