Effect of Double Shift Working (Cost Accounting)

The greatest economy in introducing double shift is the greater use of fixed assets. Though production increases but little or very marginal funds may be required for additional assets.

Let's see the impact of double shift-

• Double shift will obviously result in increase in stock (Raw Materials) as the production rises. But, it may be possible that increase may not be proportionate to production as as minimum level of stocks may not be higher. Thus, it may be possible that stocks may not be required to be doubled even if production goes up by double-fold.
• The amount of materials in process (Work-in-progress) may not change due to double shift since work started in first shift will be completed in second hence the materials in process will be same as single shift.  

In examination we can double the Raw Materials but not Work-in-Progress