The development of cost accounting in France: the engineering contribution

Abstract

Conventional wisdom argues that cost accounting did not develop until the late 1880s, a period referred to as the costing renaissance. This paper seeks to challenge this view, based on writings on cost accounting undertaken in the 19th century by French writers. In addition, the paper aims to shed light on the importance of the engineers' contribution to the development of cost accounting in the 19th and 20th century in France. The study also highlights how French writers, mainly those graduated from French engineering schools, discussed the issues of overhead allocation, depreciation, transfer prices and the distinction between fixed and variable costs long before these issues were discussed in Anglo-Saxon analysis.