INTERPRETATION OF COST ACCOUNTS 373 



twenty cents an hour, since the labor is used on them at 

 a time of the day or year when it could not be used very 

 well for any other operation. This plan is undesirable. 

 Accounts should show the facts as they exist. Policies 

 formed from these facts may and should be formed only 

 after using the facts in a more or less flexible manner, in 

 connection with one's general knowledge of the peculiari- 

 ties of the business. 



A Guide in Handling Labor. One of the biggest items 

 of cost on a farm is labor. Man labor and horse labor con- 

 stitute a considerable portion of the cost of each produc- 

 tive element. The exact proportion for each of the several 

 elements varies from about one-fifth to one-half of the total 

 cost. This proportion for each element could be reduced as 

 indicated above, if idle time could be reduced or eliminated. 



A reduction in idle time is not likely to be effected until 

 it becomes apparent to the proprietor of a farm that idle 

 time exists. There are graphical methods * showing quite 

 vividly in any particular year, or series of years that much 

 of the time paid for is not as productive as it should be 

 for the employer. 



Illustration 71 presents a Monthly Distribution of Labor 

 for both men and horses for twelve successive months. It 

 shows the number of hours worked on the average by each 

 man and horse during each month of the year. The hours 

 given to crop production are shown also. A valuable part 

 of the table from the farmer's point of view is that which 

 shows the per cent of time given to crops. From figures 

 compiled in this way from the labor and horse labor rec- 

 ords, one can see in what months he might arrange to have 

 other work available for both men and horses. 



The Illustration shows that the average man worked 

 over 3000 hours during the year, while the average horse 

 worked slightly over 1200 hours. Of the total time worked 



1 University of Missouri Research Bulletin No. 6. 



