A WIP-challenged Industry --Dickeson

Check Your Invoices

The only job cost we have is direct materials. Do we know our materials job costs? You bet your bippy we do. We've got invoices from suppliers. No BHR SWAGS. No job chargeable hours to distract us. Do we know our WIP? Easy. It's only the job-direct materials we bought and appropriated to jobs still in process. Do we know our period costs? Sure. We've got our check register to prove them and our Break-even Bogey to alert us. Do plant people understand this decision model? Of course they do.