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Cost accounting in the shipbuilding, engineering and metals industries of the West of Scotland, ‘The Workshop of the Empire’, cl900–1960

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  • A. Fleming
  • S. McKinstry
  • K. Wallace

Abstract

This article examines the nature, use and development of costing systems employed in the shipbuilding, engineering and metals industries of the West of Scotland between the years c 1900–1960. The research is for the most part archivally-based, and is founded on the surviving records of 11 firms across the sector. The sector's business history is outlined, the systems in use are then examined firm by firm, after which general conclusions are drawn about their common characteristics. Most were job or contract-based cost systems, in which rudimentary absorption techniques for overheads were applied, estimates were compared progressively with actuals and the control of departmental overhead expenditure was broadbrush. Cost accounting development within the sector is next examined, in particular the rejection of standard costing and budgetary control. This is linked with scepticism which existed about the relevance of Taylorism and Scientific Management to the area's industries, and also with the fragile industrial relations climate which prevailed over much of the period and which caused some firms to avoid payment by results remuneration systems. An engineering culture among management may also have inhibited the development of costing. The costing systems which were employed are assessed as having been adequate. The article concludes by suggesting that the factors identified as inhibiting costing development may well apply in future studies of the history of cost accounting in the UK.

Suggested Citation

  • A. Fleming & S. McKinstry & K. Wallace, 2000. "Cost accounting in the shipbuilding, engineering and metals industries of the West of Scotland, ‘The Workshop of the Empire’, cl900–1960," Accounting and Business Research, Taylor & Francis Journals, vol. 30(3), pages 195-211.
    • Handle: RePEc:taf:acctbr:v:30:y:2000:i:3:p:195-211
    DOI: 10.1080/00014788.2000.9728936
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    References listed on IDEAS

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    1. Richard K. Fleischman & Thomas N. Tyson, 1998. "The Evolution of Standard Costing in the U.K. and U.S.: From Decision Making to Control," Abacus, Accounting Foundation, University of Sydney, vol. 34(1), pages 92-119, March.
    2. Trevor Boyns & John Richard Edwards, 1997. "The Construction of Cost Accounting Systems in Britain to 1900: The Case of the Coal, Iron and Steel Industries," Business History, Taylor & Francis Journals, vol. 39(3), pages 1-29.
    3. Matthias Kipping, 1997. "Consultancies, Institutions and the Diffusion of Taylorism in Britain, Germany and France, 1920s to 1950s," Business History, Taylor & Francis Journals, vol. 39(4), pages 67-83.
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    2. McLean, Tom & McGovern, Tom, 2017. "Costing for strategy development and analysis in an emerging industry: The Newcastle Upon Tyne Electric Supply Company, 1889–1914," The British Accounting Review, Elsevier, vol. 49(3), pages 294-315.
    3. Parker, Lee D. & Boyns, Trevor, 2019. "Language in pursuit of professional branding: The case of scientific costing," The British Accounting Review, Elsevier, vol. 51(2), pages 193-210.
    4. McLean, Tom, 2013. "Cost engineering and costing in Hawthorn Leslie Shipbuilders, 1886–1915," The British Accounting Review, Elsevier, vol. 45(4), pages 284-296.

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