Cost of Production An Explanation of Principles And a Guide to Practice for the

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Rejected Sketches are a very heavy item, and are responsible for many printers' losses. The unfortunate part is that this item is always out of sight. It never comes to light in the financial accounts, and I am very much afraid that it is an unknown quantity in many houses, because the printer seldom takes the trouble to find out how much it amounts to in any period. Printers should combine to prevent customers putting a dozen or more houses in competition for expensive sketches when there is l...ittle chance of an order resulting. Often the cost of sketching more than covers the value of the order when received, and the trade as a whole loses heavily. If printers w r ould charge every sketch, and not sketch without the customer undertaking to pay for his sketches, we should not have this heavy item to cover in our cost.
However, we must face the evil, regard these rejected sketches as a selling expense, and treat them as such in the analysis of expenses.
Item 22. Work for Self. This also is seldom covered in the costs, because it does not come to light in the financial accounts.


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