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 MANAGEMENT AND
COST ACCOUNTING

F01 Management and Cost Accounting 36029.indd 1 08/02/2023 08:04

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F01 Management and Cost Accounting 36029.indd 2 08/02/2023 08:04

 MANAGEMENT AND
COST ACCOUNTING
Eighth Edition

Alnoor Bhimani
London School of Economics and Political Science

Charles T. Horngren
Stanford University

Srikant M. Datar
Harvard University

Madhav V. Rajan
University of Chicago

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

F01 Management and Cost Accounting 36029.indd 3 08/02/2023 08:04

 PEARSON EDUCATION LIMITED
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KAO Park
Harlow CM17 9NA
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com

Original edition, entitled Cost Accounting, published by Prentice-Hall Inc., Upper Saddle River, New Jersey, USA © 1999
by Prentice-Hall, Inc.
First edition published in Great Britain under the Prentice-Hall Europe imprint in 1999 (print)
Second edition published in 2002 (print)
Third edition published 2005 (print)
Fourth edition published 2008 (print)
Fifth edition published in 2012 (print and electronic)
Sixth edition published in 2015 (print and electronic)
Seventh edition published in 2019 (print and electronic)
Eighth edition published 2023 (print and electronic)
© Prentice Hall Europe 1999 (print)
© Pearson Education Limited 2002, 2005, 2008 (print)
© Pearson Education Limited 2012, 2015, 2019, 2023 (print and electronic)
The rights of Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar and Madhav V. Rajan to be identified as authors of this
work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval system, distribution
or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained
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All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in
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Contains public sector information licensed under the Open Government Licence (OGL) v3.0. http://www.nationalarchives.gov.
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Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-43602-9 (print)
978-1-292-43603-6 (PDF)
978-1-292-43604-3 (ePub)

British Library Cataloguing-in-Publication Data

A catalogue record for the print edition is available from the British Library

Library of Congress Cataloging-in-Publication Data

Names: Bhimani, Alnoor, author. | Horngren, Charles T., 1926-2011. | Datar,
Srikant M., author.
Title: Management and cost accounting / Alnoor Bhimani, London School of
Economics and Political Science, Charles T. Horngren, Stanford
University, Srikant M. Datar, Harvard University, Madhav V. Rajan,
University of Chicago.
Description: Eighth Edition. | Hoboken, NJ : Pearson, 2023. | Revised
edition of the authors’ Management and cost accounting, [2018] |
Identifiers: LCCN 2022054700 (print) | LCCN 2022054701 (ebook) | ISBN
9781292436029 (paperback) | ISBN 9781292436036 (ebook) | ISBN
9781292436043 (epub)
Subjects: LCSH: Cost accounting. | Managerial accounting.
Classification: LCC HF5686.C8 B464 2023 (print) | LCC HF5686.C8 (ebook) |
DDC 657/.42--dc23/eng/20221110
LC record available at https://lccn.loc.gov/2022054700
LC ebook record available at https://lccn.loc.gov/2022054701
10 9 8 7 6 5 4 3 2 1
27 26 25 24 23
Cover design: Michelle Morgan, At The Pop, Ltd.
Cover image: Johner Images / Alamy Stock Photo
Print edition typeset in 10/12 pt Sabon MT Pro by Straive
Print edition printed and bound in Slovakia by Neografia

NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION

F01 Management and Cost Accounting 36029.indd 4 08/02/2023 08:04

 In memory of Charles T. Horngren 1926–2011
Chuck Horngren revolutionised cost and management accounting. He loved
new ideas and introduced many new concepts. He had the unique gift of
explaining these concepts in simple and creative ways. He epitomised
excellence and never tired of details, whether it was finding exactly the right
word or working and reworking assignment materials.
He combined his great intellect with genuine humility and warmth and a
human touch that inspired others to do their best. He taught us many lessons
about life through his amazing discipline, his ability to make everyone feel
welcome, and his love of family.
It was a great privilege, pleasure, and honour to have known Chuck Horngren.
Few individuals will have the enormous influence that Chuck had on the
accounting profession. Fewer still will be able to do it with the class and style
that was his hallmark. He was unique, special and amazing in many, many
ways and, at once, a role model, teacher, mentor and friend.
He is deeply missed.
Alnoor Bhimani
London School of Economics and Political Science
Srikant M. Datar
Harvard University
Madhav V. Rajan
University of Chicago

AB: For all women who bring balance to the world

SD: Swati, Radhika, Gayatri, Sidharth
MVR: Gayathri, Sanjana, Anupama

F01 Management and Cost Accounting 36029.indd 5 08/02/2023 08:04

F01 Management and Cost Accounting 36029.indd 6 08/02/2023 08:04
 BRIEF CONTENTS

Contents ix
Guide to the case studies xvi
Preface xix
Authors’ acknowledgements xxii

PART I Management and cost accounting fundamentals

1 The manager and management accounting 2

2 An introduction to cost terms and purposes 33
3 Job costing 59
4 Process costing 90
5 Cost allocation 128
6 Cost allocation: joint-cost situations 157
7 Income effects of alternative stock-costing methods 183
Part I Case study problems 212

PART II Accounting information for decision making

8 Cost–volume–profit analysis 220

9 Determining how costs behave 247
10 Relevant information for decision making 287
11 Activity-based costing 318
12 Pricing issues and customer profitability analysis 351
13 Capital investment decisions 387
Part II Case study problems 417

PART III Planning and budgetary control systems

14 Motivation, budgets and responsibility accounting 422

15 Flexible budgets, variances and management control: I 459
16 Flexible budgets, variances and management control: II 490
17 Measuring yield, mix and quantity effects 524
Part III Case study problems 549

F01 Management and Cost Accounting 36029.indd 7 08/02/2023 08:04

 viii Brief contents

PART IV Management control systems and performance issues

18 Control systems and transfer pricing 556

19 Control systems and performance measurement 585
Part IV Case study problems 615

PART V Strategy, quality, time and emerging issues

20 Strategy, the balanced scorecard and quality 622

21 Accounting, time and efficiency 660
22 Emerging issues: digitalisation and sustainability 702
Part V Case study problems 725

Appendix A: Solutions to selected exercises 741

Glossary 807
Index 820
Publisher’s acknowledgements 831

Lecturer Resources
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as an educator on our website www.pearson.com and search
for this textbook, where you will find a tab providing
instructor resources.

F01 Management and Cost Accounting 36029.indd 8 08/02/2023 08:04

 CONTENTS

Guide to the case studies xvi The many meanings of product costs 48
Preface xix Classification of costs 48
Authors’ acknowledgements xxii Summary 49
References 50
Assessment material 51

PART I
CHAPTER 3
Management and cost accounting Job costing 59
fundamentals The building block concept of costing systems 60
Job-costing and process-costing systems 60
Job costing in service organisations using actual
costing 62
CHAPTER 1 Normal costing 64
The manager and management Job costing in manufacturing 66
accounting 2 An illustration of a job-costing system in
manufacturing 68
Management accounting, financial accounting and
Budgeted indirect costs and end-of-period
cost accounting 3
adjustments 76
Accounting systems and management controls 8
Costs, benefits and context 12
• Concepts in action: Better job costing through
big data and data analytics 77
Value creation 13
Summary 80
• Concepts in action: How the Internet of Things, References 81
artificial intelligence and big data make the
Assessment material 82
unknown visible at Rolls-Royce 17
Digitalisation and management accounting 18
Summary 21 CHAPTER 4
Appendix: Professional ethics 22 Process costing 90
References and further reading 23
Assessment material 25 Illustrating process costing 91
Case 1: Process costing with no opening or closing
work-in-progress stock 92
CHAPTER 2 Case 2: Process costing with no opening but a closing
An introduction to cost terms work-in-progress stock 93
and purposes 33 Case 3: Process costing with both some opening and
some closing work-in-progress stock 97
Costs in general 34 Weighted-average method 98
Direct costs and indirect costs 35 First-in, first-out method 101
Cost drivers and cost management 36 Comparison of weighted-average and
Cost behaviour patterns: variable costs and FIFO methods 104
fixed costs 37 Standard-costing method of process costing 105
Total costs and unit costs 40 Transferred-in costs in process costing 109
• Concepts in action: Reducing fixed costs and • Concepts in action: Hybrid costing for Adidas
managing profit growth at Porsche 41 customised 3D printed shoes 110
Financial statements, business sectors and the Hybrid-costing systems 115
recognition of costs 43 Summary 116

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 x Contents

Appendix: Operation costing 117 Effect on financial statements 198

Reference 120 Summary 200
Assessment material 121 Appendix: Breakeven points in variable and
absorption costing 200
Assessment material 203
CHAPTER 5
Cost allocation 128

Purposes of cost allocation 129 PART I Case study problems 212

Cost allocation and costing systems 130 101 The European Savings Bank 212
Indirect-cost pools and cost allocation 131 102 The ethical dilemma at Northlake 214
Allocating costs from one department to another 133 103 Electronic Boards plc 216
Allocating costs of support departments 137
Support department cost-allocation methods 137
Allocating common costs 143
Cost-allocation bases and cost hierarchies 144
PART II
Is the product-costing system broken? 146
Accounting information for decision
Summary 146
References and further reading 147
making
Assessment material 148

CHAPTER 6 CHAPTER 8
Cost allocation: joint-cost situations 157 Cost–volume–profit analysis 220

Meaning of joint products and by-products terms 158 Revenue drivers and cost drivers 221
Why allocate joint costs? 159 CVP assumptions 222
Approaches to allocating joint costs 160 The breakeven point 222
• Concepts in action: Big Data joint products and The PV graph 226
by-products create new business opportunities 162 Impact of income taxes 227
• Concepts in action: Chicken processing: costing Sensitivity analysis and uncertainty 228
on the disassembly line 168
• Concepts in action: Can cost–volume–profit
No allocation of joint costs 168 analysis help Whole Foods escape the ‘whole
Irrelevance of joint costs for decision making 169 paycheck’ trap? 229
Accounting for by-products 171 Cost planning and CVP 230
Summary 174 Effects of revenue mix on profit 232
References and further reading 174 Not-for-profit organisations and CVP 233
Assessment material 175 Contribution margin and gross margin 233
Summary 235
CHAPTER 7 Appendix: Decision models and uncertainty 235
Reference and further reading 238
Income effects of alternative
Assessment material 239
stock-costing methods 183

PART A: Stock-costing methods 184 CHAPTER 9

Variable costing and absorption costing 184 Determining how costs behave 247
Comparison of variable costing and absorption
costing 188 General issues in estimating cost functions 248
Performance measures and absorption costing 194 The cause-and-effect criterion in choosing
• Concepts in action: Can ESPN avoid the cost drivers 251
cord-cutting ‘death spiral’? 196 Cost estimation approaches 251
PART B: Denominator-level concepts and Steps in estimating a cost function 253
absorption costing 196 Evaluating and choosing cost drivers 258
Alternative denominator-level concepts 196 Cost drivers and activity-based costing 260

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 Contents xi

• Concepts in action: Activity-based costing ABC and department-costing systems 336

and cost estimation 260 Implementing ABC systems 337
Big data, machine learning and cost analysis 261 • Concepts in action: Do banks provide ‘free’
Non-linearity and cost functions 262 services? 338
Learning curves and non-linear cost functions 263 ABC and the organisational context 339
• Concepts in action: Learning curves and the Summary 341
falling price of renewable energy 267 References and further reading 341
Summary 268 Assessment material 342
Appendix: Regression analysis 269
References and further reading 278 CHAPTER 12
Assessment material 279 Pricing issues and customer
profitability analysis 351
CHAPTER 10
Major influences on pricing 352
Relevant information for decision Costing and pricing for the short run 353
making 287 Costing and pricing for the long run 355
Information and the decision process 288 • Concepts in action: Pricing and digitalisation
at H&M 358
The concept of relevance 289
Target costing for target pricing 358
An illustration of relevance: choosing output
levels 291 Achieving the target cost per unit for Provalue 362
Outsourcing and make-or-buy decisions 293 Cost-plus pricing 364
• Concepts in action: Costs, outsourcing • Concepts in action: Target pricing for the Indian
and politics 294 car market 364
Opportunity costs, outsourcing and capacity Life-cycle product budgeting and costing 367
constraints 297 Customer profitability analysis 371
• Concepts in action: Outsourcing versus automation Customer revenues 371
at Nike 300 Customer costs 372
Product-mix decisions under capacity constraints 301 Customer profitability profiles 374
• Concepts in action: Slashing cost at LEGO 302 • Concepts in action: Zara uses target pricing to
Customer profitability and relevant costs 302 become the world’s largest fashion retailer 377
Irrelevance of past costs and equipment-replacement Summary 377
decisions 305 References and further reading 378
Summary 307 Assessment material 379
Appendix: Linear programming 307
References and further reading 311 CHAPTER 13
Assessment material 312 Capital investment decisions 387

Stages of capital budgeting 388

CHAPTER 11
Activity-based costing 318
• Concepts in action: Capital budgeting for
sustainability at Johnson & Johnson 391
Undercosting and overcosting 319 Discounted cash flow methods 392
Costing system at Plastim Limited 320 Sensitivity analysis 397
Refining a costing system 323 Relevant cash flows in discounted cash
flow analysis 398
Activity-based costing systems 324
Payback method 400
Implementing activity-based costing 328
Accounting rate of return method 402
Comparing alternative costing systems 333
Managing the project 403
• Concepts in action: Mayo Clinic uses time-driven Income tax factors 404
activity-based costing to reduce costs and improve
care 334 Capital budgeting and inflation 405
From activity-based costing to activity-based Summary 406
management 334 References and further reading 407
Assessment material 408

F01 Management and Cost Accounting 36029.indd 11 08/02/2023 08:04

 xii Contents

PART II Case study problems 417 An illustration of journal entries using standard costs 477
201 Permaclean Products plc 417 Benchmarking and variance analysis 478
Summary 480
References and further reading 481
Assessment material 482
PART III
CHAPTER 16
Planning and budgetary control
Flexible budgets, variances
systems
and management control: II 490

Planning of variable- and fixed-overhead costs 491

Developing budgeted variable-overhead rates 492
CHAPTER 14 Variable-overhead cost variances 493
Motivation, budgets and responsibility Developing budgeted fixed-overhead rates 497
accounting 422 Fixed-overhead cost variances 498
Production-volume variance 498
Major features of budgets 423
Integrated analysis of overhead cost variances 500
Roles of budgets 424
Different purposes of manufacturing overhead cost
Types of budget 428
analysis 501
Financial planning models 437
Journal entries for overhead costs and variances 503
• Concepts in action: P.F. Chang’s and internet-based • Concepts in action: Variance analysis and
budgeting 438
standard costing: helping Sandoz manage overhead
Kaizen budgeting 438 costs 505
Activity-based budgeting 438 Engineered, discretionary and infrastructure costs 505
Budgeting and responsibility accounting 440 Financial and non-financial performance measures 506
Responsibility and controllability 441 Actual, normal and standard costing 507
Summary 443 Activity-based costing and variance analysis 510
Appendix: The cash budget 443 Summary 514
References and further reading 449 Reference and further reading 515
Assessment material 450 Assessment material 516

CHAPTER 15 CHAPTER 17
Flexible budgets, variances and Measuring yield, mix and quantity
management control: I 459
effects 524
Static budgets and flexible budgets 460
Input variances 525
Static-budget variances 461
Direct materials yield and mix variances 525
Steps in developing a flexible budget 462
Direct manufacturing labour yield and mix variances 530
Flexible-budget variances and sales-volume
Revenue and sales variances 532
variances 463
Variance analysis for multiple products 533
Price variances and efficiency variances for inputs 465
Summary 540
Impact of stocks 471
Assessment material 541
• Concepts in action: Starbucks maintains a focus on
direct-cost variances 471
Management uses of variances 472
• Concepts in action: Chipotle’s required focus PART III Case study problems 549
on material cost variances 474 301 Zeros plc 549
Flexible budgeting and activity-based costing 475 302 Instrumental Ltd 551

F01 Management and Cost Accounting 36029.indd 12 08/02/2023 08:04

 Contents xiii

Summary 605
PART IV References and further reading 605
Assessment material 607
Management control systems and
performance issues
PART IV Case study problems 615
401 BBR plc 615

CHAPTER 18
Control systems and transfer pricing 556
PART V
Management control systems 557
Evaluating management control systems 557 Strategy, quality, time and emerging
Organisational structure and decentralisation 558 issues
Choices about responsibility centres 561
Transfer pricing 561
An illustration of transfer pricing 562
Market-based transfer prices 565 CHAPTER 20
Cost-based transfer prices 566 Strategy, the balanced scorecard
Negotiated transfer prices 569
and quality 622
A general guideline for transfer-pricing situations 569
Transfer pricing and tax considerations 570 Strategy and strategic management accounting 623
• Concepts in action: The European Commission • Concepts in action: Strategic renewal at Puma 625
thinks Apple’s transfer price arrangements are The balanced scorecard 626
unfair 572 Quality improvement and reengineering at
Summary 572 Chipset 626
References and further reading 573 The four perspectives of the balanced scorecard 627
Assessment material 574 Aligning the balanced scorecard to strategy 628
Features of a good balanced scorecard 630
CHAPTER 19 Evaluating the success of a strategy 632
Control systems and performance • Concepts in action: Barclays turns to the balanced
scorecard 632
measurement 585
Costs of quality under the balanced scorecard 635
Financial and non-financial performance The internal-business-process perspective: analysing
measures 586 quality problems 640
Different performance measures 587 The learning-and-growth perspective: quality
• Concepts in action: Running pharmas can prove improvements 642
challenging and CEO compensation can fall! 593 • Concepts in action: Does Mercedes really stand for
Alternative definitions of investment 593 quality? What about Toyota? 645
Alternative performance measures 594 Summary 646
Choosing targeted levels of performance and References and further reading 647
timing of feedback 597 Assessment material 649
Distinction between managers and organisational
units 598 CHAPTER 21
• Concepts in action: Performance measurement
Accounting, time and efficiency 660
at Unilever 600
Performance measures at the individual activity Just-in-time systems 661
level 601 Major features of JIT production systems 661
Environmental and ethical responsibilities 602 • Concepts in action: Just-in-time live-concert
Strategy and levers of control 603 recordings 663

F01 Management and Cost Accounting 36029.indd 13 08/02/2023 08:04

 xiv Contents

Enterprise resource planning (ERP) systems 665 The digitalised enterprise control loop 708
• Concepts in action: How big data and machine Management accounting and
learning helps with stock management 666 sustainability 709
Backflush costing 666 Context and communication remain key 715
Managing goods for sale in retail organisations 674 • Concepts in action: Corporates that prioritise
Challenges in estimating stock-related costs sustainability 715
and their effects 679 Alternative definitions of investment 716
Just-in-time purchasing 681 Summary 717
Stock costs and their management in manufacturing References and further reading 717
organisations 684 Assessment material 719
Theory of constraints 686
Balanced scorecards and time-based measures 688 PART V Case study problems 725
Summary 689 501 High-Tech Limited 725
References and further reading 690 502 Tanner Pharmaceuticals and the price of a
Assessment material 691 new drug 732
503 Osram 736
CHAPTER 22
Emerging issues: digitalisation and Appendix A: Solutions to selected
sustainability 702 exercises 741
Glossary 807
Digitalisation is changing data 703 Index 820
Digital technologies are changing accounting 705 Publisher’s acknowledgements 831

F01 Management and Cost Accounting 36029.indd 14 08/02/2023 08:04

Other documents randomly have
different content
 DESIGN XXVIII.
A HOUSE COSTING $3,000.

These plans were designed for a suburban cottage, having a

cheerful outside appearance, and containing ample interior
apartments conveniently arranged, with such modern improvements
as are desirable for the use of an ordinary sized family.... Exterior,
(fig. 116.)—The general outlines are made up of simple parts,
embracing features of pleasing variety and elegance. The foundation
walls, showing four feet above ground, insure against moisture from
the earth, and add to the superficial dimensions of the structure.
Such high foundations for houses of this character afford a proper
background for the grasses and shrubbery usually surrounding them.
The irregularities of the principal building, the steep, dark-slated
roofs, with their heavy projecting cornices, truncated or hooded
gables, and enriched barge-boards, together with the stoops and
bay-windows, are proportioned and arranged to assimilate with each
other, and contribute to gracefulness and harmony.... Cellar, (fig.
117.)—Hight, 7 feet. Seven good-sized windows admit an
abundance of light, and afford thorough ventilation.... First Story,
(fig. 118.)—Hight of ceiling, 10½ feet. The rooms are unusually large,
and arranged to be pleasant, comfortable, and convenient. The front
entrance has large double doors. This hall contains the principal
stairs, which are of “platform” construction. We prefer this form
whenever the general plan allows it, as such stairs are much easier,
less dangerous, and appear better than the usual long, straight
flights. The hall connects with each principal room, obviating the too
frequent necessity of passing through one room to reach another.
The Parlor has a fire-place, adapted to either a grate or fire-place
heater (we should prefer the latter in this case, supplied with heating-
pipes for warming the chamber above,) and is provided with a
marble mantle. A large bay-window admits sufficient light, and
affords a pleasant outlook. The remaining sides of this room are
unbroken, leaving ample space for furniture, pictures, etc. The
Dining, or living-room, is intended as the most agreeable and
pleasant room in the house; it has a fire-place with hearth openings,
adapted to a “low-down” grate, which is a good substitute for the old
home-like fire-place, and affords an opportunity for a generous and
cheerful fire, and insures the most perfect ventilation. The ashes
from these hearth fires fall into the ash-pit below them, thus obviating
the necessity and dust of their daily removal. A marble mantle with a
large hearth, one bay and three plain windows, and a closet, are
provided for this room. The windows afford plentiful light, and views
from front, side, and rear, thus assuring a home-like, cheerful
apartment. The Kitchen is pleasantly situated, has four windows for
light and ventilation, and is planned with especial regard for
convenience. It is in proximity with the principal hall, rear entry, and
cellar stairway, has a large pantry, and two closets, and contains a
large fire-place, with a range, boiler, sink, and wash-tubs having pipe
attachments for hot and cold water. The dimensions of the fire-place
are 2 feet 10 inches wide, 5 feet 6½ inches high, and 1 foot 9 inches
deep, with a hearth-stone 2 feet wide, and 4 feet long. The range is
fitted into the fire-place, and has a water-back, elevated oven, and
warm-closet, and is connected by pipes with the boiler. The dumb-
waiter, shown on the plan at the right of the fire-place, is intended as
a “coal-lift,” which will save many steps and much hard labor running
for coal. This is simply a box, holding three bushels (twelve scuttles),
constructed of 1¼-inch floor planks, with wood runners 3 feet long,
on two opposite sides, conforming to grooves made in stationary
planking in the cellar, and is suspended by weights, with strong
ropes, passing over pulleys fastened to the underside of the floor-
beams. The upper portions of this closet may be fitted with shelving
and hooks, as desired. The large Kitchen Pantry, thoroughly shelved,
is in the “addition” that adjoins the kitchen, and is built in combination
with the rear stoop. The entry, conveniently situated, communicates
between the kitchen and dining-room, and with the back stoop
through the rear door.... Second Story, (fig. 119.)—Hight of ceiling,
9 feet. This story is divided in the simplest manner, has a hall, three
large chambers, with closets for each, and a bath-room, all with
sufficient windows for light and ventilation. Each principal chamber
has an open fire-place, adapted to grates. Chimneys, centrally
situated, radiate most of their heat into the rooms, thus saving fuel.
The Bath-room has a French bath-tub, with cold and hot water, and a
seat-closet. The stairway to the attic story is ceiled in over the
principal stairs, with a door at the foot. The Attic has three
apartments, two intended to be plastered and finished as chambers;
the third, or larger one, is unfinished for an open garret.... General
Construction.—The excavations are 2½ feet deep, and the loose
earth is graded around the building at completion, leaving 4 feet of
the foundation exposed to sight. The foundation-walls are built as
described for Design XXXII. The sub-sills of the windows, and the
steps and coping of the area, are of blue-stone. The chimneys being
near the center, are not connected with the foundation walls. The
rear one is constructed in box form, below the first floor, as a
receptacle for ashes, and has a small iron door near the bottom for
removing the ashes. The principal frame-work is of sound pine or
spruce timber, of the sizes mentioned in the estimate below. When
practicable, we would use pine timber for all sills and posts, as the
least liable to decay, and spruce for the girts and beams, on account
of its quality for stiffness. The siding is of two thicknesses of
boarding, as described for Design XXXII. The principal roof is
constructed at the angles of 45°, securing valuable space for attic
rooms, and is covered with dark slate laid on hemlock, with tarred
paper between. The roofs of the stoops and bay-windows, and all
gutters and valleys, are of IC. charcoal tin, laid on hemlock boards.
The method of constructing the cornice, gutters, and barge boards of
the principal roof, is shown in detail in fig. 120. A, rafter of 3 × 4; B,
plate of 4 × 6, placed 14 inches above the attic floor; C, post of 4 × 7
timber; D, gutter, having no abrupt angles to bother the tinsmith, or
impair his work, but is of circular form, and stayed with 2-inch furring
lath, on which the tin is smoothly and easily laid. E, bracket
constructed of 2 × 4, with simple scroll, sawed from 4 × 6 timber. F,
crown moulding of 1¼ × 3¼, worked solid; G, barge-board with the
crown-moulding attached; this closes the ends of the gutters to the
hight of the dotted line at D. The stairs, interior trimmings, and the
general painting, are intended to be similar to those described for
Design XVII. In the estimate appended will be found a full schedule
of the materials required to construct, and fully develope a house by
these plans. The quantities given may be relied on as correct, and
their cost is compiled from the prices now ruling in this vicinity.—
Estimate:

69 yards excavation, at 20c. per yard. $13.80

18,500 brick, furnished and laid, at $12 per M. 222.00
53 ft. stone steps, and coping, at 30c. per ft. 15.90
841 yards plastering, complete, at 28c. per yard. 235.48
250 yards stucco cornices, at 25c. per yard. 62.50
4,903 ft. timber, at $15 per M. 73.54
2 sills, 4 × 8 in. 30 ft. long.
2 sills, 4 × 8 in. 22 ft. long.
3 sills, 4 × 8 in. 18 ft. long.
8 posts, 4 × 7 in. 22 ft. long.
Ties, 4 × 6 in. 302 ft. long.
Plate, 4 × 6 in. 151 ft. long.
75 beams, 3 × 8 in. 18 ft. long.
54 rafters, 3 × 4 in. 13 ft. long.
500 wall-strips, 2 × 4 in. 13 ft. at 11c. each. 55.00
320 sheathing, 9½ in., at 25c. each. 80.00
170 lbs. tarred paper, at 3c. per lb. 5.10
320 siding-boards, 9½-inch, at 28c. each. 89.60
Materials in outside dressing and cornices. 80.00
161 hemlock boards, principal roof, 10 in., at 16c.
each. 25.76
14½ squares of slate, at $9 per square. 130.50
306 flooring, 9½ in., at 28c. each. 85.68
2 stoops, complete, at $50 each. 100.00
2 bay-windows, complete. 120.00
Stairs, complete. 75.00
21 plain windows, complete, at $12 each. 252.00
7 cellar windows, complete, at $6 each. 42.00
22 doors, with base and trimming, complete, at $10
each. 220.00
 2 marble mantles and 3 shelves, complete. 68.00
1 range, with elevated oven and warm closet,
complete. 80.00
Plumbing and gas pipes, complete. 175.00
Coal-lift and shelving, complete. 25.00
2 rooms in attic, finished, complete. 60.00
Nails, $20; bells and speaking-tubes, complete,
$15. 35.00
Painting, $240; cartage, $40. 280.00
Carpenter’s labor, not included above. 250.00
Extra for incidentals. 43.14
Total cost, complete. $3,000.00

Should it be desirable to reduce the cost of building by this plan, it

may be done without changing the principal outlines or
arrangements, by the following deductions and omissions, viz.:

Saving.
Foundations reduced in hight from 7 ft. to 6½ ft. $20.00
5 cellar windows, instead of 7. 12.00
Inclosing with single thickness siding. 80.00
Roof of shingles, instead of slate. 60.00
4 plain windows, instead of the 2 bays. 72.00
Deduct 1 window in each: dining-room, kitchen, bath-
room. 36.00
Reduce the cost of windows and doors, each $1.50. 64.50
An ordinary range, instead of one with an elevated oven. 40.00
Omit the finish in attic. 60.00
Omit plumbing and gas-pipes. 175.00
Omit coal-lift, bells, and tubes. 30.00
Total reductions. 649.50
Making the cost $2,350.50
Fig. 116.—elevation of house.
Fig. 117.—plan of cellar.
Fig. 118.—plan of first floor.
Fig. 119.—plan of second floor.
Fig. 120.—cornice, gutter, and barge-boards.
 DESIGN XXIX.
A HOUSE COSTING $3,100.

These plans were designed for a summer residence near Toms

River, N. J. They are especially adapted to situations where the more
pleasant views are to the rear, making it desirable to have the
principal rooms on that side of the house.... Exterior, (fig. 121.)—
The Swiss-like style is due to its bold roofs, wide projections, and
rustic details of finish, there being no attempt at architectural
display.... First Story, (fig. 122.)—The Hall, which is unusually
large, is entered from the front porch through double doors, contains
the main stairs, and communicates with the library, parlor, dining-
room, and a passage leading to the kitchen. A Closet is finished
under the stairs opening from the passage. The Library is nearly
square, with openings in the center of each of its four sides, and is
divided from the parlor by large folding-doors. The Parlor is of good
dimensions, has large windows opening to the floor, and leading to
the piazza. The Piazza is 12 feet wide, affording shade and ample
protection from storms, and may be used in pleasant weather to
enlarge the capacity of the parlor. The Dining-room is entered from
the main hall, and communicates through the pantry with the kitchen.
The Kitchen has windows front and rear, giving a good circulation of
air, and is furnished with a range, boiler, sink, and pump, connected
with the necessary piping, with supply from the cistern. Private
stairways lead to the second story, and to the cellar; the necessary
pantries are provided. The one-story Addition is divided into three
parts, making a work-room or shed, inclosing the well, a servant’s
bed-room, and a store-pantry.... Second Story, (fig. 123.)—This
story contains a hall, five good-sized chambers, seven closets, and a
bath-room. The hall has nine doors leading to the several
apartments, two stair landings, and a window, while it occupies but
little space. The Bath-room has a bath-tub, seat-closet, and pipes for
cold and hot water.... Attic, (fig. 124.)—A hall and two chambers are
finished in this story. The stairs leading to it are inclosed, and have a
door at the foot. The hall is lighted by a dormer window in one end.
At the opposite end a door leads to the space under the wing-roof,
where the tank is placed, immediately above the bath-room....
Construction.—The hight of the cellar is 6½ feet, of the first story
10½ feet, of the second story 8 feet, of the attic 7 feet. The
foundations are of brick-work, and show two feet above the final
grades. The chimneys are of brick-work, and have six open fire-
places, with hearths to each, adapted to the use of either wood or
coal fuel. The plastering is “hard-finish” on two coats of brown
mortar. Stucco cornices and centers, of simple design, are put in the
first story of the main house. Marble shelves with stucco truss-
supports are put above each fire-place. A well and cistern are
included in the estimate. The depth of the former is put at 30 feet, as
the average. To avoid the danger of the caving in of the sides while
digging, it is best to make the excavation 4½ ft. square (not circular,
as is usually really done.) Rough planks, 4½ feet long, with their
ends notched half way across, are slid in to lock with each other
closely against the banks, as the excavation proceeds, making this
part of the work perfectly safe in any kind of earth. The depth of the
well should be sufficient to secure at least four feet of spring water.
Of course it would be impracticable to lay the brick-work under water
that depth, and therefore a circular curb 3 feet 3 inches in diameter,
and 6 feet long (inside measure) must be made of ordinary boards,
with an interior 4-inch timber rim at the bottom, and let down into the
well as soon as water is reached. The rim forms the foundation of
the brick-work. After laying a few courses around, say to the hight of
one or two feet, their added weight will force them (curb and all)
downwards under the water as fast as the depth is increased. The
clear inside diameter, when finished, is 2 feet 10 inches; the top
courses of brick, to the depth of 3 feet, should be laid in cement
mortar; all others laid “dry.” The Cistern is constructed entirely of
brick and cement mortar, in the earth; 7 feet across, and 8 feet deep
in the clear. The frame of the house is of spruce timber, siding of
clear pine, beveled clapboards, laid on sheathing-felt. Roofing of
cedar shingles, laid “three thick” on spruce lath. The cornices have
projections of two inches for each foot of their hight from the ground,
which is appropriate for buildings of this character, and is double that
of the usual styles. These projections are ceiled underneath with
tongued and grooved boards, and bracketed with chamfered timber
trusses. Openings are made through the gable cornices to allow for
the escape of heated air from under the roof. The flooring is of 9-inch
tongued and grooved spruce plank. All windows above the cellar
have 1½-inch sash, and outside blinds. Doors are panelled and
moulded. The inside trimmings are quite plain, single moulded, with
bold members. The upper frame-work of the piazza is left exposed
on the underside, and is neatly dressed and chamfered. The first-
story stairs are strongly constructed of pine, with newel, rail, and
balusters of black walnut.
Estimate of materials and labor:

93 yards excavation, at 20c. per yard. $18.60

30 ft. digging well, at $1 per ft. 30.00
19,000 bricks (cellar foundation, chimneys, cistern, and
well,) furnished and laid, at $12 per M. 228.00
4 barrels cement, at $2.50 per barrel. 10.00
1,200 yards plastering, at 28c. per yard. 336.00
5,974 ft. of timber, at $15 per M. 89.61
1 girt, 4 × 8 in. 32 ft. long.
8 posts, 4 × 7 in. 20 ft. long.
45 beams, 2 × 8 in. 12 ft. long.
30 beams, 2 × 8 in. 17 ft. long.
35 beams, 2 × 8 in. 11 ft. long.
1 sill, 4 × 8 in. 313 ft. long.
1 plate, 4 × 6 in. 313 ft. long.
61 beams, 2 × 8 in. 20 ft. long.
20 beams, 2 × 8 in. 13 ft. long.
2 girts, 4 × 6 in. 30 ft. long.
700 wall-strips, at 11c. each. 77.00
500 clapboards, at 14c. each. 70.00
350 shingling-lath, at 6c., $21; 9,650 shingles, at 2c.,
$193. 214.00
 150 ft. gutters, valleys, and leaders, at 10c. per ft. 15.00
1,500 ft. dressed lumber in cornices, at 4c. 60.00
513 flooring, at 27c., $138.51; 30 windows, at $12,
$360. 498.51
250 lbs. felt, at 5c., $12.50; 35 doors, at $10, $350. 362.50
5 marble shelves, at $6, $30; stairs, $100. 130.00
Closet finished, $50; well-curb, $12. 62.00
Range and plumbing, $280; nails, $20. 300.00
Carting, average 1 mile, $40; painting, $230. 270.00
Carpenter’s labor, $250; incidentals, $78.78. 328.78
Total cost, complete. $3,100.00

Fig. 121.—elevation of front of house.

 Fig. 122.—plan of first floor.

Fig. 123.—plan of second floor.

Fig. 124.—plan of attic.
 DESIGN XXX.
A FRAME AND BRICK FARM-HOUSE COSTING
$3,300.

These designs represent a farm-house having an air of substantial

comfort and refinement, and affording ample space and convenience
for a large family.... Exterior, (fig. 125.)—This style admits of the
simplest and most economical finish, is susceptible of almost any
degree of irregularity, and is therefore suitable for the greater
number of rural buildings. The indestructible covering of the side-
walls and roofs has the merit and appearance of permanency....
Cellar, (fig. 126.)—The central division is 7 feet high, has five
windows, and outside door, and a stairway leading up to the kitchen.
The girders under the first floor beams are supported on large posts,
standing on firmly-imbedded flat stones.... First Story, (fig. 127.)—
Hight of the ceilings, 11 feet in main house, and 9 feet in the one-
story wings at the side and rear. The parlor, sitting-rooms, kitchen,
and front hall, are in the main house. The rear wing contains a
summer kitchen, bath-room, and a large kitchen pantry. The side
wing is divided into a bed-room, clothes-press, and pantry. The
Parlor, Sitting-room, and Bed-room face the front. The Kitchen is the
largest apartment, and is arranged to be used as the Living-room. It
has windows in each end, an outside door leading to a pleasant
veranda, is in direct communication with the front hall, sitting-room,
summer kitchen, two pantries, and the cellar stairs. The Summer
Kitchen, intended to relieve the larger room of the heavier work, is
furnished with a range, boiler, sink, pump, and wash-tubs, and has
an outside door. The Bath-room is situated at the side of the summer
kitchen, and contains a bath-tub and a seat-closet. A tank 3 × 3 × 6
feet, is placed between the ceiling and roof of this wing, and
arranged to receive rain-water from the main roof. A force-pump is
set near the iron sink, and arranged to supply water from the cistern
to the tank, when the rain supply is exhausted. It will be observed
that all the plumbing apparatus is placed in close proximity, thus
insuring economy in the cost of their introduction, and also that their
location prevents any serious injury that might arise from a chance
bursting, or through carelessness. No windows are shown at the rear
of the summer kitchen, or bath-room, this space being reserved for
any additions that may be desired for fuel, etc.... Second Story,
(fig. 128.)—Hight of ceilings, 9 feet. There are five chambers, a hall,
and two closets in this story. Each chamber is of good dimensions,
well lighted (twelve windows in this story,) and may be warmed if
required, either by stoves placed in them or through pipes inserted in
the flues for the introduction of hot air from heaters in the first story,
as described for Design XXXII.... Attic.—A flight of stairs, located
above those of the first story, and inclosed with narrow ceiling, with a
door at the foot, leads to the garret or attic. This story is thoroughly
timbered and floored, but otherwise unfinished.... Construction.—
The foundation walls are of broken stone, laid in good mortar, 18
inches thick, and show 2 feet above the final grade of the
surrounding earth. The materials of the frame are indicated in the
estimate below, and are framed together, and raised in the usual
manner, except that the sills are placed 4 inches back from the face
of the foundation, to provide a footing for the water-table and brick
inclosing. The inside of the exterior frame is roughly ceiled around
with hemlock boards, which are thoroughly nailed to the studding,
bringing them “into line,” and making them firm. The method of
inclosing the sides of the building is shown in fig. 129. A is the
foundation; B the water-table; C the brick wall; D, inside boarding; E,
E, E, timber of the frame. The water-table, of dressed stone, is laid
on the foundation in cement mortar. The brick are laid in “stretchers,”
in good lime and sand-mortar, with close joints. Anchor nails (fig.
130) are driven in each stud in contact with the upper surfaces of
every fifth course of brick, as shown in the sketch. The window sills
are of smoothly dressed stone, set in the regular manner. The
window and door frames are made as for 8-inch brick-work. The
heads are arched over with brick projecting half an inch beyond the
face of the walls, forming a coping to the windows. The anchor nails
are made of ordinary galvanized ⅛-inch fence-wire; 6 inches long is
required for each nail, 1 inch of both ends being bent at a right angle,
and one end is flattened to be easily driven into the studding, and the
opposite end is imbedded in the joints of the brick-work. These nails
are best applied by a carpenter employed to accompany the masons
in their work. This mode of building exterior walls may be new to
many persons, but it has been demonstrated and proved to be
thoroughly practical, and for many reasons preferable to the usual
“solid brick” wall; it is less expensive, does not retain moisture,
requires no “furring off,” or “filling in,” and attachments of cornices,
stoops, or balconies, are easily made to connect with the inside
frame work.... The main and wing roofs are covered with dark 8 ×
16-inch slate, laid 7 inches to the weather. Mason’s lath are put on
the inside boarding in a vertical manner, 16 inches apart, and the
interior of the two full stories is lathed, plastered, and otherwise fully
completed.
Estimate of Cost:

157 yards excavation, 4 feet deep, at 20c. per yard. $31.40

60 perches stone foundation, at $2.75 per yard. 165.00
44 ft. stone steps and cellar window-sills, at 30c.
per ft. 13.20
278 feet dressed stone-sills and water-table, at 75c.
per ft. 208.50
31,000 brick furnished and laid, at $12 per M. 372.00
925 yards plastering, at 28c. per yard. 259.00
Stucco cornices. 30.00
6,707 ft. timber, at $15 per M. 100.60
Sills 4 × 8 in. 252 ft. long.
Plates, 4 × 6 in. 252 ft. long.
Ties, 4 × 6 in. 324 ft. long.
Girders, 4 × 8 in. 46 ft. long.
10 posts, 4 × 7 in. 23 ft. long.
70 beams, 3 × 8 in. 22 ft. long.
21 beams, 3 × 8 in. 15 ft. long.
8 beams, 3 × 8 in. 13 ft. long.
 1 piazza, 3 × 7 in. 122 ft. long.
1 piazza, 3 × 5 in. 70 ft. long.
100 joist, 3 × 4 in. 13 ft. long, at 16c. each. 16.00
400 wall-strips, at 11c. each. 44.00
600 hemlock boards, for sheathing and roofing, at
16c. each. 96.00
Cornice materials, $70; 21 squares slate, at $9,
$189. 259.00
436 ft. tinning, gutters, and leaders, at 8c. per ft. 34.88
500 flooring, 9-inch spruce, at 26c. each. 130.00
Stairs, complete, $90; piazzas, $130. 220.00
5 cellar windows, complete, at $6 each. 30.00
33 windows, above cellar, complete, at $10. 330.00
25 doors, at $10, $250; range and plumbing, $250. 500.00
3 mantles, $75; closet finish, $25. 100.00
Painting, $113.66; cartage, $30. 143.66
Carpenter’s labor, not included above. 200.00
Incidentals. 16.76
Total cost, complete. $3,300.00