Williams, R., Management accounting practice and price calculation: Soho foundry, School of Accounting & Finance, University of Wollongong, Working Paper 12, 1995.
When deciding upon the price to charge for one of their products the managers of the Soho Foundry in Birmingham placed great reliance upon the data stored in their accounting system. By the last decade of the eighteenth century the nature of the steam engine business was changing rapidly and reputation alone was insufficient to attract customers. Also as more industrialists decided upon steam as a source of power and competition to supply their needs more attention had to be paid to price structures. As well, increasing standardisation of product meant that a price list could be determined. This paper addresses the processes undertaken at the Soho Foundry to establish price lists for engines and parts.