discount received by the shop is important if he is planning to extrapolate inventory adjustments or parts revenue.

THE MITCHELL GUIDE

The Mitchell Guides and Mitchell Software now available provide information which an auditor may not require during the course of an audit since it often duplicates that provided by vendor invoices. It is, however, one of the primary tools of the industry so he or she should understand how the reference works.

The Guides are a series of volumes which contain pricing and repair information for automobiles. They are broken down into specific years and vehicle manufacturers. The specific title used by the auto body industry is the Collision Estimating Guide (Either Domestic or Foreign). Volumes and software are updated several times each year depending upon pricing changes.

The user is provided with general parts information such as illustrations, parts numbers, and whether

interchangeable or discontinued. The Guide includes the cost of the parts at manufacturers' suggested retail prices at the date of publication.

Mitchell also supplies the suggested labor time (in

tenths of an hour) it will take to REPLACE a particular part. These times will be broken down into the complexity of the labor involved (that is, body, frame, paint, etc.). Labor times will also be provided for replacement of glass, application of stripes and decals, and for things such as sanding and grinding.

As explained above, the Mitchell Guides are essential for both auto body shops and insurance companies to prepare estimates in a quick and efficient manner.

In the event they are needed for reference, the auto body shop will usually have copies. Certain years may also be maintained at the local library.

ORGANIZATION OF RECORDS

Auto body shops usually employ relatively simple record keeping systems. Some knowledge about how the records are maintained, however, will save an examiner time by indicating HOW to ask for the essential information.

 

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