Since expenses are a more or less fixed item, their relation to the
total volume of business transacted must have the constant attention of
the manager. Statistical charts made up from the reports sent in by the
various branches, with summaries of total results, compared either by
territories or by branches or by product will show to the manager the
past history and also the present trend of the business as a whole or
in parts. From these charts he is able to form an intelligent basis for
inaugurating future policies of control.
Main Principles of Branch Accounting
The underlying principles upon which branch store accounting is based
are very simple, but the superstructure will be simple or complex
according to the nature of the business and the information which the
head office requires for its accounts and records.
The main points to be kept in view in installing a system of accounts
are to insure: