Shop Management

SHOP MANAGEMENT 115 (f) The Cost of All Items Manufactured, with Complete Expense Analysis and Complete Monthly Comparative Cost and Expense Exhibits. The books of the company should be closed once a month and balanced as completely as they usually are at the end of the year, and the exact cost of each article of merchandise finished during the previous month should be entered on a comparative cost sheet. The expense exhibit should also be a com- parative sheet. The cost account should be a com- pletely balanced account, and not a memorandum account as it generally is. All the expenses of the establishment, direct and indirect, including the administration and sales expense, should be charged to the cost of the product which is to be sold. (g) The Pay Department. The pay department should include not only a record of the time and wages and piece work earn- ings of each man, and his weekly or monthly pay- ment, but the entire supervision of the arrival and departure of the men from the works and the various checks needed to insure against error or cheating. It is desirable that some one of the “exception sys- tems” of time keeping should be used. (h) The Mnemonic Symbol System for Identifica- tion of Parts and for Charges. Some one of the mnemonic symbol systems should be used instead of numbering the parts or orders for identifying the various articles of manufacture, as