2, Individual performance will be closely supervised by the Chief Auditor of the department and the Senior Accountant in charge of operations, 3. Any changes or modifications to this S. 0. P. will be determined by the department head after careful review of the matter in question with the Senior Accountant. 4. C, Policy revisions will be initiated only upon approval and direc tion of top side echelons. PRICING OF MATERIALS: 1. When pricing from Purchase Orders it is necessary to give full con- sideration to any "Revisions" to the original Purchase Order. These "Revisions" can affect the quantity, unit cost, extension of item (3), or the including of a trade discount. Should any of these factors be ignored the result will be an inaccurate cost. Prices in many instances are quoted per dozen, per hundred, or per thousand while the quantities are shown in other units. In order to obtain a unit price when Purchase Order reads per (c), meaning one-hundred, and (m) which means one-thousand, it is only necessary to move to the left the decimal two places and three places respectively: Example: 3. $10.05 per (c) equals .1005 each $10.05 per (m) equals .01005 each Discounts are of two kinds; cash and trade. (a) A cash discount is one which is earned either by prompt payment of an invoice or by meeting the terms as set forth by a vendor which may read 2% or 5% if payment is made within ten days or thirty days. Taking advantage of a discount of this type is money earned and therefore not deducted from -List price, This method of absorbing cash discounts is recognized by the project and accordingly all cash discounts will be ig- nored in pricing computations. Do not confuse cash discounts with trade discounts, the latter being a reduction in the cost of material and therefore figured in computations. (b) A trade discount is generally one of more than 5% and might be given for one of the following reasons; to meet competitors price or if sufficient quantities are purchased over a period of time, A discount of this type is always deducted from the list price. 13-61