IC 8044 Cost Accounting And Control At Calumet Division, Calumet & Hecla, Inc., Calumet, Mich. ? Summary

Calumet Division, Calumet & Hecla, Inc., whose operations are in Houghton and Keweenaw Counties, Mich., is a highly integrated and complex organization. This division operates mines, a railroad, a concentrating mill, a reverberatory smelter, and the auxiliary generating plants and shops to service these operations. In addition, it operates a sands reclamation plant, leaching plants, a foundry, and a machine shop that serves varied industries with castings and parts for many applications. Calumet & Hecla, Inc. has produced over 60 percent of all the copper that has been produced in Michigan since discovery of the ore in 1864, and in 1959 the company ranked eight among the country's producers with a production of 17,407 tons. To keep abreast of modern accounting systems developed elsewhere in industry and to combat increasing costs due to higher labor and supply costs, as well as increased costs due to deeper mines and lower grade ore, the company has developed a modern machine cost accounting system. This not only provides the usual bookkeeping and cost accounting facilities but offers accurate cost data for engineering evaluation of the mining operation. This system is credited with being instrumental in permitting continued operation of these high-cost mines in a period of increasing costs with no corresponding increase in the price of metal.