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SIDEBAR 5-2
EDISON'S FINANCES AND THE ELECTRICAL INDUSTRY
Although the experimental facilities West Orange were
second none, the accounting system left much desired.
Edison's low opinion the profession accounting has become
part his myth, but was very interested calculating and
recording the exact costs R&D.
Edison preferrred experimenting accounting and often
left the task covering all the experimental costs the lab
until money was badly needed. The
costing and billing normally took place well after Edison had
carried out the experiments. This
practice suited Edison's freewheeling style invention and
reflected the bookkeeping heritage brought with him from Newark
and Menlo Park. The procedure was enter into a
contract for experimental services, carry out experiments, cost
them, and finally bill them the appropriate company. The practice Edison's
bookkeepers was make list all experiments carried
out over fixed time period, and then Edison, assistant,
would indicate whom the experiment should billed. was less concerned with
the formalities bookkeeping— statements and billing. The lab still billed well after
. Then would sit down with his
secretary and through shop orders, deciding who should be
billed for experimental work.'*' Edison
developed his method costing and billing for experiments
while was Newark
