Hey Duncan: From an experienced accountant; there is lot of misunderstanding about "overhead" in cost accounting. Want to see some of the dumbest, most outlandish, and downright stupid accounting in the world; examine a hospital bill for someone that was in the hospital for 2 or 3 days for something mild, like the flu. And then there is the fact that some firms/people are just downright fraudulent. In the last few days I have heard of two things taking place in the auto industry that are unethical, fraudulent, and illegal. One was from the used car industry where some dealers install an "engine light kit" which is a device to prevent the check engine light from coming on. For obvious reasons. The other involves a function in the auto service industry where people like the service advisor, parts man and others work on commission, which of course gives incentives to "sell" more. Well this one involves the parts guy who simply fraudulently "overbills" for parts for the express purpose of padding his commission. Numbers do not always tell a true tail. IMO the "supplies" charge to which you are referring should simply be built into the per hour shop rate. What's next, they charge you for "electricity" used, building depreciation etc etc. The list is infinite. ________________________________ From: Duncan <whocanduncan1@xxxxxxxxx> To: "tcb@xxxxxxxxxxxxx" <tcb@xxxxxxxxxxxxx> Sent: Tuesday, January 14, 2014 4:40 AM Subject: [tcb] Question on cost of Shop Supplies What would you say is the general, "average" charge by shops for "shop supplies?" Is it usually a flat fee or a percentage of the bill? Have you noticed shops including taxes if a percentage? Do you consider zip ties (cable ties) as a chargeable item or a "shop supply?" Do you consider $25 per cable tie excessive, if chargeable? Ha! Can you tell there's a storm brewing in Austin? Duncan