Elder statesman.

AuthorKundu, Sankar Prasad
PositionLetters - Letter to the editor

I enjoyed February's In business column. I was born on September 8, 1918, so I am older than the institute by half a year exactly. I feel nostalgic when recall how our profession has evolved.

In World War I the British government had the power to compel manufacturing units to aid the war effort. Manufacturers executed the orders on the principles of prime cost plus basis (materials plus wages and machining costs etc) plus ten per cent. A problem arose when calculating compensation for individually. In the books of accounts, opening stocks and all expenses were debited and sales and closing stock were credited, resulting in surplus or deficit. The result showed all the products together.

It was not possible to ascertain whether there was more than one profit or loss for individual products, and they needed to ascertain costs for every order...

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