METHODS OF CONDUCTING COST STUDIES. 41 



THE ENTERPRISE RECORD IN DETAIL. 



The first consideration for the record of any enterprise cost study 

 is the size and value of the entire farm, with the distribution of the 

 acreage and values of the land used for the production of the various 

 crops for the previous year, and a statement of the yields and cash 

 receipts from the various crops. 



Man labor. — In the special enterprise to be studied, the principle 

 and most difficult items of direct expense are considered in turn. 

 The first of these is the direct labor on the enterprise. The labor is 

 first considered in terms of the hours of man and animal or mechanical 

 power required by the various operations concerned in the production 

 of the crop or animal product in question. This is expressed in terms 

 of the normal rather than as the extreme time in which the operation 

 may be performed. It is usually approached in such a manner as to 

 arrive at the number of acres covered in a day of 9 or 10 hours 

 with a certain power unit; this factor, applied to the acreage, say of a 

 particular crop, provides the total time required on that crop. This 

 has been termed the practice side of an enterprise study; that is, 

 obtaining the basic information as to what are common practices and 

 the amount of time necessary to perform the operations. Next, it is 

 essential that a record be obtained of the cost of all labor used on the 

 farm, together with an approximate record of the total number of 

 months of man labor expended, the amount of wages paid, and an 

 estimate of the cost of board consumed by the hired help. 



Horse labor. — In studying by the survey method an enterprise in 

 which horse labor is an expense, it is always difficult to arrive at a 

 satisfactory rate per hour of horse labor without reference either to 

 detailed cost accounts for similar types of farming or to information 

 obtained by the survey method on this particular point. It is often 

 possible to obtain fairly accurate figures on feed requirements and 

 other costs of maintaining farm work horses along with the enterprise 

 survey, thus providing a means of determining approximately the 

 cost of horse labor per hour. 



Materials. — " Materials" include the seed, twine, spray material, 

 feeds, etc., used in production. With figures on the quantities of 

 materials actually used are recorded also current prices, but the 

 quantities are noted on a normal basis as well as for the current year. 

 It is advisable to record, in this connection, the approximate total 

 expense of operating the farm, in order to be able to compare the 

 enterprise studied with the total earnings, expenses, and the labor 

 income of the farm as a whole. 



Equipment. — The next item of importance is farm equipment, with 

 special emphasis on the equipment used for the enterprise studied. 

 Usually it is advisable to obtain a very complete list of the larger 



