Helpful Cost-Accounting.

Probably the Railways Department has a more extensive system of cost-accounting than any other enterprise in New Zealand. The consumption and cost of materials, train-running, labour and all else are always under accurate observation and “form-at-a-glance” tabulation.

To ensure an equitable spread of overhead charges to the various jobs in the workshops, each shop is divided into departments, and the overhead charges for each one are separately computed. These charges are loaded on to jobs on a productive man-hour basis. It is actually a daily costing system, as the entries to jobs for wages and material are made daily and up-to-date information of progress of any work is always readily available. The foremen in charge of the various jobs are furnished with daily and weekly statements showing the man-hours debited against each job and account. This enables each foreman to keep closely in touch with his job, and also links up the costing and budget systems. One imagines that the motto of a job is “watch me grow.”