Methods of Time Booking: 3 Methods | Labour Cost | Cost Accounting

Time booking can be entrusted to the foreman or to time booking clerks. Sometimes it is done even by employees. It can be recorded either manually or mechanically.

The following are the various methods of time booking:

Method # 1. Daily Time Sheet System:

Under this method, the time spent by workers on different jobs for a certain day is recorded. For each worker a sheet of paper is issued wherein his time spent on various jobs are recorded.

This sheet consists of the following particulars:

i. Workers name

ii. Worker’s identification number

iii. Name of the department

iv. Machine Number

v. Date of work done

vi. Job number

vii. Nature of work performed

viii. Starting and finishing time on the job.

ix. Actual, normal or overtime hours of work done.

x. Signature of time booking authority.

A pro-forma of daily time sheet is shown below:

Signature of time booking authority.

Merits:

(1) It is simple to operate.

(2) It enables the foreman to know-how much of work is done by employee each day.

(3) The record shows accurate information as it is checked by the foreman every day.

(4) This method is particularly useful where more number of jobs are to be performed on the same day

(5) The daily time sheets can be kept much cleaner, as each sheet is handled for only one day and by only one worker.

(6) As the daily time sheets are handed over to the wages office every day, there is no chance of any sheet getting lost.

(7) As the daily time sheets are handed over to the wages office every day, there will be no delay in making entries.

(8) It facilitates the reconciliation of time spent on work with the time spent in the factory. This reconciliation is helpful in ascertaining and controlling the idle time.

Demerits:

(1) It involves more of clerical work by way of consolidation of all the daily time sheets for one full month.

(2) It is not suitable for large business concerns.

Suitability of the Method:

(1) When size of the business is small.

(2) Where the workers has to attend the more jobs instead of few jobs on the same day.

Method # 2. Weekly Time Sheet System:

Under this system, each worker is provided with a time sheet every week for recording the particulars of time spent by him on the various jobs during the week. The weekly time sheet contains the name of the worker, his identification number, the various jobs.

The weekly time sheet may be written up by the worker himself or by the foreman or by the time recording clerk. If it is written up by the worker himself, it is required to be countersigned or certified by the foreman. At the end of the week, it is handed over to the cost office for making entries.

Signature of the foreman.

Advantages:

(1) This system is more convenient and economical.

(2) When compared to daily time sheet system, weekly time sheet system involves less paper work.

(3) It is quite suitable for intermittent job and contracts, such as building construction, interior decoration, etc.

Disadvantages:

(1) There is the possibility of some of the weekly time sheets missing where the number of sheets is large.

(2) As the weekly time sheets are handed over to the cost office only at the end of the week, the ascertainment of the labour cost of a job is delayed.

(3) It is very difficult to compute the labour cost of a particular job, because the time spent on a particular job has to be compiled from a number of weekly time sheets.

Method # 3. Job Cards or Job Tickets:

Under this method a card is made used of for recording the time spent by workers on various jobs instead of sheets of paper. Each employee will be given a card which contains the particulars of work to be performed by him.

This card is to be filled in by employees by noting down the starting time and finishing time of the job which he attends to when a worker completes a job he will be given a separate job card to book the time on such job.

A specimen form of job card is given below:

Merits:

(1) It provides information relating to the job to be performed by the workers. Thus it serves as an authority to start the work, besides recording the total time spent by workers on jobs.

(2) It provides correct and clear information for costing department.

Demerits:

(1) It involves more paper work when worker performs several jobs every day.

(2) Reconciliation of attendance time and time booked on job becomes difficult when idle time is not properly recorded.

Method # 4. Combined Time and Job Card:

This document contains two parts. The first part is to be filled in as attendance time and the second part, the total time spent on jobs. This facilitates reconciliation of gate time with the work time and the extent of idle time can be easily detected. This method fulfills the objectives of both time keeping and time booking.

A specimen of this document is shown below:

Merits:

(1) It combines the merit both attendance time and time booking.

(2) Compared to maintaining time keeping and time booking separately, it is more economical.

(3) The idle time is properly accounted for.

Demerit:

(1) This method is not suitable for large sized undertakings.

Method # 5. Labour Cost Card:

A labour cost card is used to record the time spent by all the workers on various operations of the job. In other words, the time spent by a group of workers attending on a job is recorded in labour cost card. This card is meant for a job instead of workers.

As when a worker records time spent on the job, it shall be passed on to the workers. This record, thus, shows the total time spent on a job and the wages to be charged to that job. As this card shows the total labour cost of a particular job it is termed as labour cost card.

Method # 6. Piece Work Card:

The card shows the number of units produced by the workers and the time spent in manufacturing the units. This method is adopted where piece rate system of wage payment is adopted. A separate card is prepared and used by every worker to record the number of units produced and the total time spent by him.

A pro-forma of piece work card is shown below:

Though piece workers are paid on the basis of units produced and not on the basis of time taken, recording their time spent on different jobs in essential, particularly where overheads are absorbed on the basis of labour hours. Moreover, it ensures that piece workers do not cause any interruption in production by their late arrival or early departure.