294 PROPOSED SYSTEM. 



employment of an outside expert who is paid for his services by 

 the job. The illustration is not fortunate, as it implies a charge 

 for material. 



(b.) Material. 



The analysis of material is conducted on the same general plan. 

 The material cards are sorted down to operations and those of 

 the same name and price are combined and entered as shown. 

 When credit entries are shown, the quantity credited may be 

 deducted without comment if at the same price as that charged ; 

 if at a different price, a separate entry should be made and the 

 cost deducted before extension to the columns headed N., O., C. 

 If the credit entry should exceed the debit entry, the excess should 

 be noted in the remarks and be deducted from the total under C. 



It will be remembered that charges for material herein refer 

 only to material expressly procured for any one object or opera- 

 tion. There is no cumulative charge for material in transit through 

 the different stages of manufacture. To determine the cost of 

 material up to a certain point, we must include all charges upon 

 the different components of the object in question by a process 

 which is quite the reverse of the analysis of which we are treating. 

 This applies to the charges for services as well. 



(c.) Shop Expenses. 



If these are uniform throughout the arsenal, see page 218, they 

 can be determined in gross or for each operation from the time 

 given in the analysis of services. 



But if they vary for the different departments, in case a given 

 operation on the same object has been performed in more than 

 one department, which is very improbable, the service cards be- 

 longing to that operation should be further sorted according to 

 departments, and the shop expenses for each department entered 

 in the column of cost. The nature of the charge should be 

 entered, by remark in the first column, as " shop expenses." 



When a standing order is analyzed, the credits it has received 

 for shop expenses charged to orders under different appropriations, 

 should be deducted from the gross cost of services in order to 



