If the $4,000 wages paid is charged as direct or productive labor it gives a cost of $102.56 each──an increase in cost with nothing in the figures that shows the cause. If, however, an inefficiency charge of $100 (2½% of $4,000) or $2.56 per machine is added as a separate item, it is seen at once that here is an unusual item of expense. The amount ($2.56 per machine) is included in the final costs, but in the right place; there is no cause for confusion on account of an apparent, but not real, increase in the productive labor cost. If the cost of $100 per machine obtained during the preceding month is standard for productive labor, it still is the attainable standard; the fact of an unusual expense has in no way affected the legitimate cost of productive labor. Another great advantage in presenting the labor cost statistics in this manner is that inefficiencies are shown in an understandable form. The fact that indirect labor is increased, say 2%, might occasion no comment; but if an inefficiency charge of even 1% is shown, it calls for immediate investigation. The establishment of standard or efficiency labor costs means predetermined costs. This is a radical departure from established custom; on its face, contrary to recognized accounting practice; in results, wonderfully efficient. To determine standards in men, material, and machines is a function of the engineer; the recording of facts──the actual cost──is the function of the comptroller or accountant. The two must work together. Properly prepared accounts, showing actual costs with the items that make them segregated, show the engineer how far short of possible standards the plant is running──the extent of the inefficiency. [Illustration: Fig. 34. Record Card for Applicants for Employment] RECORDS OF EMPLOYES =18.= In connection with the different time records designed to record hours of service and units of production, there should be a personal record of employes; and the more intimately personal it can be made, the more valuable will the record become. [Illustration: A BIRD'S─EYE VIEW OF THE PLANT OF STUDEBAKER BROS. MANUFACTURING CO., SOUTH BEND, IND.] Napoleon, it has been claimed, could call by name every man in his armies, but, however great value may have been placed on such a memory feat, the manager of the present─day great business organization, who can call by name each of his employes, is an exception. [Illustration: Fig. 35. Card for Record of Applicants] [Illustration: Fig. 36. Card for Record of Employes] It is not necessary that he should do so, for, as business is now specialized and departmentized, he needs to know only the results of the labor of those employes. By this is not meant that he should not take an interest in the personality of his organization; on the contrary, he should be very much interested, but he can be relieved from burdening his mind with details by means of simple records.