Mastering power production ; the industrial, economic and social problems involved and their solution . d standard costs that are indi-vidual for each plant and condition of load, correct comparison is 35i impossible, and conclusions from a mere study of accountants figuresare apt to be grossly in error. Figure 111 reproduces a diagram of standard cost for a hydro-electric plant consisting of four 600 kilowatt generators. This equip-ment is located in a hall adjoining the turbine room of a plantwhose standard costs are shown on diagram Figure 113; samecrew attends to both steam and hydroelectr
Mastering power production ; the industrial, economic and social problems involved and their solution . d standard costs that are indi-vidual for each plant and condition of load, correct comparison is 35i impossible, and conclusions from a mere study of accountants figuresare apt to be grossly in error. Figure 111 reproduces a diagram of standard cost for a hydro-electric plant consisting of four 600 kilowatt generators. This equip-ment is located in a hall adjoining the turbine room of a plantwhose standard costs are shown on diagram Figure 113; samecrew attends to both steam and hydroelectric equipment; thepayroll is prorated between the outputs of each. The cost of 050 , 040 -I 1—1 1 1 f—J 1 1 1 I | | | f 77?,? Vertical Bars indicate the Standard Cost of 1000 Pounds of Steam, onWhat the Product should Cost, considering Price of Coal, Labor and Suppliesand the Monthly Output at Best Practically Obtainable Efficiency. The Distance between actual Cost Curve and the Top of -the Bar is aMeasure of Preventable Loss. If Actual Cost Curve crosses a Bar~. Fig. 114.—Graphic Comparison of Actual and Standard Unit Costs power is thus regarded as the result of methods used on one sideand given physical conditions on the other. If the cost analysissucceeds in segregating these elements and measures each, the mostvaluable knowledge will be secured. If the prices of materials,supplies and labor are known, the efficiency and characteristic ofequipment used are also known; the nature of service, character ofload and some local factors would influence the expenses in a mannernot difficult to determine. In a given plant all these elements remainconstant until a change is made by a new installation, new marketprices or a new field of service, etc., all of which are readily notice- 352 able and accountable. Now if the costs still fluctuate, the differencebetween the actual cost and the predetermined is due to the variationof the methods of mana
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