Page:SELECTED ESSAYS of Dr. S. S. KALBAG.pdf/93

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The costs may be calculated on the following basis: All direct costs of materials should be charged. Direct labour should be charged on notional basis; the time cost may be decided on the basis of local rates. Time used figures from optimum, to be achieved after practice. Depreciation should be charged where the equipment is specifically for that purpose. Where the equipment is used for production for a short period only, proportionate depreciation may be charged if the usage is 50% or more. In other cases, calculate the depreciation in a project proposal and charge the same rate per item. Overheads; where overheads cannot be easily determined, use a figure of 10% on materials consumed. We consider that after the costs as calculated above are recovered, one may add a margin of about 15% if there is a profit distribution scheme. We do not charge the margin on items of an experimental nature. Our Experience Over the last 10 years or more, we are convinced that a semi commercial operation is feasible. It brings realism to the work; staff remains alert and up to date and it constantly brings new opportunities to light. Most importantly, it encourages entrepreneurship. Many of our staff members have left to start their own enterprises, because their stay with us has given them the confidence. We have found that the position on our staff has become a route to self-employment. Many of the workshops in this region have been started by our ex-students. Two of the staff members from the other schools where this program Rural Development Through Education System 80