Page 71 - Essentials of Payroll: Management and Accounting

ESSENTIALS of Payr oll: Management and Accounting
I N THE R EAL W ORLD CONTINUED
second, calculate the cost of collecting it, and then determine the
benefit of using the resulting information. She would then see if costs
could be reduced for the existing collection system, while losing no
benefits from the system. If this was not possible, or if the costs
could be reduced only by a modest amount, then she would inves-
tigate the possibility of reducing the level of information gathered,
which in turn would reduce the cost of data collection.

Ms. North’s first step was to determine the level of detailed informa-
tion collected by the timekeeping system. She interviewed the facility’s
controller, Ms. Barbara MacCauley, who said that the timekeeping
system required employees to write down on a time sheet the hours
they worked each day on specific jobs, as well as the workstations
where they worked on each job. The typical time sheet looked like
the one shown in Exhibit 2.5.

EXHIBIT 2.5

Atlanta Facility Time Sheet

Employee Name: Mort Dulspice
Date of Time Card: 4/13/03

Time In Time Out Job Work Center
08:00 08:45 004712 Lithograph
08:46 09:12 004712 Etching
09:13 10:48 004712 Lamination
10:49 12:00 004712 Glue
01:00 02:10 004799 Lithograph
02:11 03:04 004799 Etching
03:05 03:17 004799 Lamination
03:18 04:24 004799 Glue
04:25 05:00 004799 Packaging

44