/ Accounting for Payroll in .NET

Drawing QR Code in .NET / Accounting for Payroll
22 / Accounting for Payroll
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depend on the availability of a central computer This problem is a particular issue in companies that have large amounts of machinery that generate electrical energy The extra radiation can interfere with the transmission of signals from the workstations to the central computer, usually requiring the installation of either heavily shielded cabling or the use of fiber optics, both of which are expensive options An employee uses the dumb terminal to enter his employee number, the start time, and the job number All time accrued from that point forward will be charged to the entered job number until the employee enters a different job number This data-entry process may require a large number of entries per day, introducing the risk of a high degree of data inaccuracy The problem can be reduced by the use of bar-coded or magnetic-stripe employee cards, as previously described, as well as the use of bar-code scanning of all current job numbers This last option is clearly much more expensive than any preceding option since the cost of the central computer can be in the range of $10,000 to $250,000 and requires a large number of dumb terminals that cost at least $500 each Why incur this expense This system gives a company the ability to track the time worked on specific jobs This is a very important capability when customers are charged based on the specific number of hours that employees work on their projects, especially when the customer has a right to investigate the underlying hourly records and to protest billings that do not match these detailed records This is a particularly important issue for government work, where cost-plus contracts are still common and the government has a right to closely review all supporting labor records It may also be a major concern for any organization where the cost of direct labor is still a relatively large proportion of total costs Otherwise, managers would have no valid information about how a large proportion of company costs are being incurred Nonetheless, the data-entry system required to support the collection of this information is very expensive, so one should conduct a cost-benefit analysis to see if the value of the supporting information is worth the cost of the system It is also possible to have employees manually track the time they charge to each job on which they are working This option may seem much less expensive than the use of data-entry terminals that was just described However, this approach is not recommended unless the number of employees using it is very small The level of data errors will be extremely high, given the large number of jobs to which labor is charged each day the time charged to a job may be wrong as well as the job number to which the time is charged As a result, the cost of the administration time required to track down and correct these problems will greatly exceed the cost of installing an automated time tracking system; this correction cost will be so high for a large facility that the comparable cost of an automated system will be far lower A final timekeeping system that is not frequently used is through backflushing This is not a real timekeeping system at all Instead, the standard labor hours are stored in the labor routings database for each product and multiplied by the amount of production completed each day This yields a standard amount of labor that should have been completed for each workstation in order to complete the
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Accumulating Time Worked / 23
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total amount of production issued This method is only good for developing approximations of the amount of labor that was needed to complete each step in the production process It is of no use for spotting labor inefficiencies and cannot be used to derive payroll (since it does not report hours worked at the employee level, nor would these numbers be accurate even if it did so) Thus, the backflushing method, though a simple way to derive approximate labor hours, does not yield accurate information for most purposes to which direct labor information is put It should be apparent from the discussion in this section that a higher degree of data accuracy and a lower cost of timekeeping on a per-transaction basis can only be achieved with a high degree of expensive automation and the more information required from the system, the more expensive it will be to collect it Accordingly, one must first determine how badly a company needs every possible type of direct labor data, and then structure the type of data collection system based on the level of need In order to make this decision, it is best to review the following section It describes the various types of data that can be collected through a timekeeping system
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