Millwork Cost Schedules

(Continued from

(d) waste in kiln drying (e) Unloading kiln cars (f) Grading and shed piling (g) carrying charges (h) loading to the mill..

Page 20)

Commercial Burden (warehousing, office and selling, and delivery) ....:..... 20.W

While the. above illustration-s. do not cover the subject fully it illustrates the plrrpose: that lbsts compiled ,,as and'*ir* itr"v occur" permits diversified products to be costed and sold to matcir competition -as it exists. For ,you include only those costs which are actually incurred. Whether it is rough lumbir, stock doors, glass, frames, cabinet work or hard-ware .eich articli may be iriatiri solely on its _own merits. It i{ but common sense t6 say that no one concern has any advantage over any other concern'in sittinc any particular_ line of goods ex-c-ept that derived from volume, efficil ency, ttnancial strength or indiyldual effort.

Manufacturing costs -and seliing costs must be kept separate in Millwork Cost-schedules. It ii ttre ptoui.- of 'the- f"aFidr; Iheth€r he shall purchase his products made or manufacture them. 'fherefore- Factory Cost and Purchase Cost is the same cost in so far.as deciding whether you sho-uld buy or make. One (factory cost) rs the pnce you pal your own factory and the other is the price you pay to some other factory.

In dealingwith Factory Qgst you treat with provable facts rrrespecttve of how the producf'is manufactured or how it is sold. but. with sellin_g cost (commer-ciat burden; warehousing, office an-d sellrng and.delivery), the cost varies according to the method of s-ellrng (robber, wholesaler or fetailer) and this cost is so varied that the methods of the selling r-nust be considered before a standard c_ag be determined. To deteigrine setling prices the frctorv Coii Schedule may be doubled to flrm a list -and the list aiscouritea -to take care of the commercial b-urden and profit. So a ninth aiiom may be.added "Millwork Schedule should bt priced at Factory Cost."

If- th-e.produit we-re purchased manufactured ,"ldi'io, stotked in the warehouse, the price would be determined as folfows: