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Vance Asbestos Removal Company removes potentially toxic asbestosi estimator has been involved in a long-simmering dispute with the on-site work supervisors. The on-site supervisors claim that the estimator does not homes, and non-routine work, such as removing asbestos believe that up his position in this way. "My job is to measure the area to be cleared of asbestos. As directed by top management. I simply ation and related products from buildings. The company's adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older contaminated ceiling plaster in industrial buildings. The on-site supervisors work is far more expensive than routine work and should bear higher customer charges. The estimator sums e square metres by $4,300 per thousand square metres to determine the bid price. Since our average cost is only $3,300 per thousand square metres, that leaves enough cushion to take care of the additional costs of non-routine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart To shed light on this controversy, the company initiated an ABC study of all of its costs. Data from the ABC system follow otal Activit Removing asbestos Estimating and job setup see, 000 m2 Number of jobs Number of non-routine jobs Not applicable; these costs are not allocated to jobs. 300 jobs* 25 non-routine jobs jobs Other (costs of idle capacity and organization-sustaining costs) The total number of jobs includes non-routine jobs as well as routine jobs. Non-routine jobs as well as routine jobs require estimating and setup work. s 230,000 645,000 89,000 fees

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