Management, finance and cost control in the Midlands charcoal iron industry

Abstract

The iron industry was fully industrialized by the seventeenth century. The initial ironmasters were landowners, with clerks managing their ironworks. Professional ironmasters emerged from the clerks by the 1600s. The largest iron businesses (such as that of the Foley family described here) had general managers. Loans (secured by bonds) were important for business finance, including for paying up share capital. Accounting varied between charge and discharge-oriented systems of double entry bookkeeping and those maintained according to the classic Italian method. Cost accounting was not systematically practised, but yields from raw materials were monitored and the information contained in the financial accounts contained data relevant to performance decision making. Managers were trained on the job by experienced managers.