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If particular items of equipment are used in a single process only, it 
might often be more convenient to derive the equipment cost standards in 
terms of production units of the relevant process. An example is the use of a 
stereocomparator for analytical aerial triangulation, the equipment costs per 
stereomodel being obtained by dividing the annual stereocomparator costs by 
the estimate of the number of models triangulated per annum. 
It is, of course, not necessary to determine cost standards for all 
available items of equipment and it is often more convenient to add the 
equipment costs of the smaller items, which are only used incidentally, to 
the general overhead costs of the relevant production centre and thus include 
them in the personnel cost standards. Typical examples of these smaller items 
are drafting kits, stereoscopes, photo lab equipment, etc. 
3.4 Establishment of Personnel Cost Standards 
Personnel cost standards are derived in much the same way as equip- 
ment cost standards, with this restriction, that they are only established for 
staff directly involved in production (ie operators, field surveyors, draftsmen, 
etc, but not supervisors and managers). In certain circumstances it might even 
be appropriate to establish several classes of these cost standards, so that 
distinctions can be made according to the skill and seniority of the staff 
employed. Care must again be taken in the estimation of the number of 
effective hours worked per year. Factord to be considered include time lost 
due to leave, sickness, training periods, idling, etc. 
3.5 Material Costs 
A major portion of the costs of the materials used can be charged 
directly to the product and will thus bypass the production centres. Actual 
purchase costs, including costs for transport and taxes, have to be marked up 
by a factor to account for internal handling, storage, loss of interest, and 
waste. 
3.6 External Services 
Depending on the nature of these services, these costs will either be 
charged direct to the appropriate product, or, as is the more usual case, 
assigned to one of the cost centres.