Die toepassing van koste- en kosprysbeheer in die visbedryf van Walvisbaai

Abstract

Abstract taken from Abstracts of theses and dissertations accepted for higher degrees in the Potchefstroom University for Christian Higher Education, 1956-1975, Faculty of Economic Science, 1976, pp. 149-151:

This investigation has once again revealed the common inclination of industries to neglect the economic side of production especially during times of prosperity. This feature still gains in prominence and importance due to the failure of technicians to entrust control to economists as soon as technical difficulties have been solved. Technicians can hardly be expected to have expert knowledge of the costing problem and although projects may be a technical success, they are not very often economically sound and beyond criticism. This condition also prevails in most industries in the Republic and is apparently one of the most important causes of the high production costs

The production proccss was investigated in order to establish natural borders between the various costing sections and centres and furthermore, in view of the intimate relationship between the organic structure of a concern and the cost allocation line

In section B the normative aspects of cost price and cost control were investigated with a view to applying them to the fishing industry. It became evident that a considerable deficiency in the field of labour control still exists in this industry. Selection of labour should not only contribute to increasing the productivity thereof but should also decrease the turnover of labour. Increased productivity can also be expected from improved training facilities. Since no distinction between productive and unproductive labour exists it is difficult to ascertain whether or not production is satisfactory and most economical. It is therefore recommended that, where necessary, a clear distinction be made between these types of labour. The resultant increased labour and production control will inevitably establish a sound basis for incentive wages

Since serious difficulties are encountered in allocating each worker's exact contribution towards production, the introduction of such a system (which is bound to increase the group effort) has thus far been unsucccssful. A reliable allocation in the various production costing centres is however feasible and a wage incentive scheme based on this method, is consequently recommended

No distinction is made between the different costing centres when labour costs are calculated. In other words, it is not possible to determine the direct labour costs and other labour charges in addition to direct wages. This problem is solved in the appendix and a type of financial accounts is suggested

In the majority of industries material control is unsatisfactory mainly as a result of the stores buildings being unsuitable for the introduction of proper material control systems. No provision for instance exists for bin cards and with the limited available space, hardly any storeman can really be expected to store and control material efficiently. Increased space would facilitate thorough storage of material and should also tighten up control thereof. Requisitions should be completed with greater care and the most stringent measures should be taken to ensure proper codification of requisitions in order to simplify the allocation of material costs

With regard to overhead costs some confusion still exists, primarily as a result of the Anglo-Saxon concept. The allocation of these costs is consequently a regressive numeration, mainly since no attention is given to the causal context

The application of costing standards (not standard costs) is employed only sporadically in the fishing industry, which clearly indicates some deficiency. In this regard it is suggested that a limited but incorporate system of standard costs should be introduced only in those costing centres where necessary and applicable. This system should facilitate daily costing reports and increase the accuracy thereof. Furthermore, cost price and cost control will be considerably simplified

The complete lack of an organised and well founded system of budgetary control is a serious deficiency. Without such a system of control, the whole industry resembles a ship without a compass. A budgetary control system which may simultaneously serve as a production pattern, is therefore suggested for the fishing industry

In summarizing an incorporated system of financial accounts, cost and budgetary accounts with a limited system of standard cost calculation is suggested in this analysis with a view to simplifying cost control and cost price control. The principle of cost calculation must furthermore be based on the normative concept. -