Robert Hamilton's Contribution to Accounting.

Abstract ABSTRACT: This article discusses some of the accounting ideas that were developed in 1777/79, by a Scottish professor, Robert Hamilton, in his book, An Introduction to Merchandize. Hamilton's life and background are briefly described and a comparison is made of his treatment of certain key accounting procedures with those proposed by contemporaries. Hamilton's introduction of such important topics as value to the owner and residual income, and his treatment of depreciation and the question of joint cost apportionment, are looked at. With his emphasis on the usefulness of accounts for decision making, Hamilton was a precursor of management accounting and he was an early writer on cost accounting. His costing system, his use of profit centers, and his awareness of the relevance of opportunity costs, are considered. Finally the article ponders on the neglect of this man's important contribution and expresses the hope that it will soon be more widely recognized.