Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-03-19
COST Of SMALLEST
ARTICLES FIGURED
Abbott -Dehoit's President Tells of
Efficiency Methods Employed
in Figuring Expenses

Few dealers in automobiles, and
practically none who use them, ever
stop to consider the enormous amount
of detail necessary to arrive accurately
at the factory cost of a car"
This is the observation of Edward
F., Gerber. president of the Abbott
Motor Car Company, who within the
few months has acquired control
ling interest in this concern.
ITO secure the exact cost of each
of the $4,000 parts entering into an
automobile requires more detail, more
labor and more vexation OF spirit than
the average man can readily under
stand. And yet for any manufacturing
concern to be success 1t Is absolutely
necessary to have some good system of
arriving at the cost of it's product.
Cost records can be maintained by
many small manufacturing concerns
without much trouble and expense,
where their products do not differ ma
terially. But with a big automobile
concern the case Is different. It's out
put is large and extensive, every car
being made up of innumerable pieces
and small parts. This makes neces-
sary the installation of very COM
prehensive department to correctly de-
termine the cost Of every finished car.
ITO arrive at these figures, many
actual tests must be made, especially
in the machine shops and in the paint
ing and trimming departments. Not
only the amount of material used in
the construction of each part must
be figured, but also the labor cost And
any waste in materials used must be
correctly determined.
While there is no particular waste
in the larger items entering into a
car, yet the percentage runs high in
a great many things. For instance in
cutting up hides of leather for up
lholstering purposes the waste is very
large. This is also the case with many
of the smaller items, such as tacks,
bolts, screws, rivets, paints, etc. An
accurate account is kept of each test,
! so that q fair and safe proportion of
waste may be determined, and proper
allowances made therefor.
| "A large record book is kept so
the cost of each part of each model,
and of the entire automobile itself,
may be known at glance. Not only
are we able to determine the cost for
any one period of time. but also for a
series of preceding periods, so that
proper comparisons may be made with
former figures.
Every month the records of the
past month are checked over and
variations are noted in the record
book, SO that figures are always up to
date. The work requires men of much
| experience in cost accounting, and in
addition to this they must have prac-
tical knowledge of the automobile
business. 1t would not be possible for
any novice to furnish even a close
estimate of the shop cost of different
parts, for many details have to be
taken into consideration which one
can master only in years of expert
ence.
"A large percentage of orders re-
ceived at our factory do not follow
the regular method of construction
and the cars have to be made special
This is true with few other high
grade automobile manufacturers, but
as a rule does not apply to low-priced
concerns. In these cases it is the
duty of the cost department to figure
the extras or the reductions in con-
\ struction cost, based on the price OF
regular work. After this new cost is
ascertained, the selling price is deter
mined.
In my opinion manufacturers are
coming to realize more and more the
great Importance of accurate cost rec
ords, and | believe that the next year
or two will see more comprehensive
systems established in many automo-
bile concerns than in the past"