will accrue an increasing credit balance in the reconciliation account, as the season proceeds, so that at the end of the processing season, an adequate balance has been built up to finance the annual plant overhaul during the hutdown period. Conversely, maintenance may be costed as a fixed percentage of the capital cost of the plant(See Table 13.2) Consumable stores These items comprise all purchases of materials ancillary to production, such lubricants, adhesives, paint, cleaning materials, industrial clothing, etc. Again, an allowance related to weight of throughput is made, with conciliation being made as factual expenditure is known Water The actual metered quantity is charged to the weekly production Electricity The cost of power and light is calculated from meter readings, and the apportionment to the various products, or departments, is made as for Unpacked Cost With the above information, and costs apportioned to the relative products made in the week, an'unpacked costis computed. The main costs are factual, based on known usage and value, and the arbitrary charges per pound of end roduct, such as maintenance, overhead consumables, etc, are corrected continuously in the reconciliation account, as the true costs become known Pa The specific packaging materials are charged to each product in its particular cost column, and after this addition has been made, a'packedcost, or ' ex factory'cost is calculated. This can now be evaluated against the previously fixed'standardcost, to measure the efficiency of the factorys operation Selling Cost and Transportation Having established the true factory cost and its relation to the standard cost, the operations of selling, promotion and shipping have to be considered. The dehydrator will have to decide whether, in the main, he is going to sell his production in bulk packs to wholesale, catering and manufacturing buyers, or specifically to retail outlets Sales budgets will vary widely in accordance with this decision, as will promotion budgets and transport costs, and it is, therefore, not possible to elaborate in this chapter on this area of economic practicewill accrue an increasing credit balance in the reconciliation account, as the season proceeds, so that at the end of the processing season, an adequate balance has been built up to finance the annual plant overhaul during the shutdown period. Conversely, maintenance may be costed as a fixed percentage of the capital cost of the plant (See Table 13.2) Consumable Stores These items comprise all purchases of materials ancillary to production, such as lubricants, adhesives, paint, cleaning materials, industrial clothing, etc. Again, an allowance related to weight of throughput is made, with reconciliation being made as factual expenditure is known. Water The actual metered quantity is charged to the weekly production. Electricity The cost of power and light is calculated from meter readings, and the apportionment to the various products, or departments, is made as for overheads. Unpacked Cost With the above information, and costs apportioned to the relative products made in the week, an 'unpacked cost' is computed. The main costs are factual, based on known usage and value, and the arbitrary charges per pound of end￾product, such as maintenance, overhead, consumables, etc, are corrected continuously in the reconciliation account, as the true costs become known. Packaging The specific packaging materials are charged to each product in its particular cost column, and after this addition has been made, a 'packed' cost, or 'ex factory' cost is calculated. This can now be evaluated against the previously fixed 'standard' cost, to measure the efficiency of the factory's operation. Selling Cost and Transportation Having established the true factory cost and its relation to the standard cost, the operations of selling, promotion and shipping have to be considered. The dehydrator will have to decide whether, in the main, he is going to sell his production in bulk packs to wholesale, catering and manufacturing buyers, or specifically to retail outlets. Sales budgets will vary widely in accordance with this decision, as will promotion budgets and transport costs, and it is, therefore, not possible to elaborate in this chapter on this area of economic practice. 257