It is true that the final results in the long run will be
the same whether replacements and renewals are treated as
repairs, thus reducing the depreciation charge, or as replace-
ments, thus increasing the depreciation charge. It is not
results in the long run, however, for which we are looking.
We are looking for, and urgently need, current operating
statistics for anal3rtical and comparative purposes, as only
in this way can we be sure that the plant for the current
period is operating as efficiently as for the past period. When
extensive and costly replacements which are incurred only
occasionally and quite intermittently are treated the same
as ordinary repairs which are incurred in a marked degree of
regularity, the effect is to badly distort costs, not only for com-
parative and anal3rtical purposes, but for price-making purposes.
Very often it is the case that labor costs only are used
for purposes of judging of the operating efficiency of the
various departments, omitting from consideration all other
items of cost. This is due to the fact that items other than
labor for given periods are not comparable, and the reason
that they are not comparable lies in the faulty handling of
the expense items. There is no reason but that expense items
can be handled just as satisfactorily and as accurately as
labor costs, and a comparison and analysis of expense items
is just as productive of results as a conq>arison and analysis
of labor costs. Wastage, leaks and inefficiency are as often
found with respect to material, supplies, repairs and cfAtcr
contrdllablfe items of cost as with rbspelct to labor.
