It’s been pretty simple in the past-just add up the hours we think it will take,
decide which professional will handle it,
add something for supplies and travel,
apply some general overhead,
and Call it a day.
Now, however, with trainees coming here and using the specialized facilities, we’ll need to have different overhead rates for different types of jobs. We will definitely have to start keeping track of costs using a job-order approach. We may need to use some activity-based costing, as well.”
It’s been pretty simple in the past-just add up the hours we think it will take, decide which professional will handle it, add something for supplies and travel, apply some general overhead, and Call it a day. Now, however, with trainees coming here and using the specialized facilities, we’ll need to have different overhead rates for different types of jobs. We will definitely have to start keeping track of costs using a job-order approach. We may need to use some activity-based costing, as well.”
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