In  the  latter  part  of  1916  inquiries  were  sent  out  by  the  manufac-
turing cost  committee  of  the  National  Association  to  ascertain  how
many  members  had  adequate  cost  systems.  The  results  of  the  in-
quiry were  considered  by  the  cost  committee  at  a  meeting  on  Decem-
ber 21,  1917.  The  committee  reported  that  of  107  replies  received
73  members  had  satisfactory  cost  systems  and  34  had  no  systems  at
all.  The  34  firms  having  no  cost  systems  were  distributed  through-
out practically  all  of  the  various  lines  represented  in  the  association.
As  the  result  of  its  study,  the  committee  on  manufacturing  costs
again  recommended  to  the  executive  committee  that  a  cost  depart-
ment be  established,  that  a  fund  of  $5,000  to  defray  the  expenses  be
raised  by  special  subscription  from  members,  and  that  a  capable  ac-
countant be  employed  and  the  work  begun  at  the  earliest  possible
date.  It  was  further  recommended  that  the  executive  committee
adopt  the  cost  accounting  system  developed  by  a  representative  of  a
member  firm  as  the  official  system  of  the  association.  At  a  meeting
of  the  executive  committee  of  the  association  on  January  11,  1917,
the  following  resolution  was  unanimously  adopted :

That  we  accept  the  committee's  recommendation  that  the  uniform  cost  ac-
counting system  as  prepared  by  Mr.  Wharton  be  adopted  as  the  official  system
of  the  association.
