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The city council is considering a new ordinance to require stores to provide reusable bags and eliminate disposal paper or plastic bags. In determining whether to pass the law, the city council obtained an estimate for the expense stores would incur in offering reusable instead of disposable bags. They also obtained an estimate for the savings which would result from not having to clean up litter from disposable bags. Finally, they consulted with an environmentalist to assess the positive impact that phasing out bags would have, including enhanced safety for local wildlife. In deciding whether to pass the law, the council relied on:
Overhead Rate
A calculation used to allocate indirect costs to produced goods or services, often based on labor hours, machine hours, or direct labor costs.
Cost of Services Account
An accounting category that includes all direct costs associated with the delivery of services, such as labor and materials.
Job Costs
The total expenses associated with a specific job or project, including labor, materials, and overhead, used for pricing and profitability analysis.
Job Cost Sheet
A document used to track the expenses associated with a specific job or project, including materials, labor, and overhead costs.
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