There is actually a bit of a duality regarding what times and part costs the cost report is supposed to represent. The rules state that manufacturing times should be those that would occur in a production environment and not neccesarily the time it actually took to make the part. However, the processes used should be the same as actually used. To some people this means a manual machining operation will always be costed as a manual operation. To me and many others it means if it was machined it doesn't matter whether it was manual or CNC a machining operation is the same either way.