Jeff says:
>They charge 12 dollars for a reostat, and 5 dollars for
>the tech to turn it?
It all depends on how creative your accounting is at hiding real costs.
A $6 rheostat has to be ordered by purchasing. It has to be unpacked and placed
in stores. It has to be issued to the line and installed. It has to be adjusted,
and there has suitable paperwork prepared to give test instructions/method. The
invoice has to be reconciled with the delivery note, and the cheque and
remittance advice raised. Even with maximum computersiation, that lot costs in
time, and it adds up.
Of course, you can short circuit these procedures - that's if you're not a
quality firm that control what's happening. One thing I remember being told on
the management course I did (before I decided to stick to engineering) is that
in reality, unless you have a factory making only one product, you don't know
how much each unit really costs. Even if you make only one product, it's
difficult.
73
Peter G3RZP
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