UTILITY OF THE METHOD T.H.M. (MACHINE - HOUR - RATE) PRODUCTION CENTURY PROCESS AUTOMATION
The method T.H.M. (machine - hour - rate) gives greater accuracy in the factories or departments, where production is largely by machinery. In the specialty literature, the notion of price - the time - the car is defined as "œa rate calculated by dividing the budgeted or estimated overhead or l...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universităţii "Constantin Brâncoveanu"
2014-11-01
|
| Series: | Strategii Manageriale |
| Subjects: | |
| Online Access: | http://www.strategiimanageriale.ro/papers/140432.pdf |
| Summary: | The method T.H.M. (machine - hour - rate) gives greater accuracy in the factories or departments, where production is largely by machinery. In the specialty literature, the notion of price - the time - the car is defined as "œa rate calculated by dividing the budgeted or estimated overhead or labour and overhead cost attributable to a machine or group of similar machines by the appropriate number of machine hours. The hours may be the number of hours for which the machine or group is expected to be operated, the number of hours which would relate to normal working for the factory, or full capacity". In a highly mechanised cost centre, majority of the overhead expenses are incurred on account of using the machine, such as, depreciation, power, repairs and maintenance, insurance, etc. This method is currently offering the most equitable basis for absorption of overheads in machine intensive cost centres.
|
|---|---|
| ISSN: | 1844-668X 1844-668X |