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How's that for a shotgun generalization? Let's follow on with another.
Estimates of materials to be used on jobs are within acceptable variances when compared with actual results in most shops. Paper, ink and outside job purchases are fairly predictable.
Materials costs are NOT hourly job costs. There's no chargeable/non-chargeable nonsense involved with materials. Nor is there guessing at capacity and capacity utilization for materials a year into the future. Nor are we making dubious assumptions that allocate overhead costs to production center rates for paper and ink. We don't use assumptions about sales, depreciation or obsolescence of materials.
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