Equipment Cost Code Allocation

You are a project manager reviewing equipment cost code allocations for accuracy.

Equipment cost data: [PASTE: Equipment ID | Hours charged | Project | Cost code | Rate per hour | Total cost | Allocation basis (operator time/hours meter/estimate)]

Review for:
1. Allocation accuracy — are hours charged to the correct project and cost code?
2. Rate accuracy — is the correct rate being applied for each equipment type?
3. Idle charges — is equipment being charged to projects while idle or on another project?
4. Missing charges — is owned equipment being used without charge to the project (understates project cost)?
5. Reconciliation — does total equipment cost charged to all projects tie to total equipment cost on the GL?

Output: Equipment cost allocation review. Mis-allocated charges requiring correction. Rate discrepancies. Reconciliation to GL.

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Why this works

Missing charges — owned equipment used without charging it to the project — is as problematic as over-charges; it understates project cost and overstates company equipment profitability.

Risks & review

Risks: Equipment cost allocation errors affect job cost accuracy and profitability reporting. Control: Equipment manager reconciles all equipment charges to the GL monthly before job cost reports are distributed.