Costs, administration depreciation

Net operating expenses Fixed selling, administration costs inch depreciation... 

In almost all research units the ratio of personnel to other costs are fairly similar and constant. In countries with a high income level about 65-75% of the project cost are personnel costs and 25%-35% are other costs (consumables, administration, depreciation etc.). In a university institute where cost of buildings and administration are usually not included in the institute s budget, personnel cost may account for an even higher percentage of the entire budget. 

In this analysis, the cost components considered are equipment, consumables, maintenance, labor, support personnel, and administrative costs. The equipment costs include depreciation, moves and rearrangements, floor space, and training. Consumables consider utilities, chemicals, supplies and waste disposal. Maintenance includes maintenance labor, parts, vendor service contracts, vendor training and software. Labor is the cost of operators. Support personnel costs consist of engineering, supervision and contract labor. Administrative costs include insurance, taxes and interest. 

Total Capital Cost The installed cost of the fixed-capital investment Cpc is obviously an essential item which must be forecast before an investment decision can be made. It forms pai4 of the total capital investment Cfc, defined by Eq. (9-14). The fixed-capital investment is usually regarded as the capital needed to provide all the depreciable facihties. It is sometimes divided into two classes by defining battery limits and auxiliaiy facilities for the project. The boundary for batteiy limits includes all manufacturing equipment but excludes administrative offices, storage areas, utihties, and other essential and nonessential auxihaiy facilities. 

A chemical plant has every type of cost associated with the operation of a car and many more. The major categories are raw materials, conversion costs, depreciation, sales, research, taxes and insurance, and general administration costs. A method for determining the magnitude of each of these follows. A summary is given in Table 10-2. 

Production fixed costs account for e.g. depreciation of assets as well as fixed costs for shift personnel of course companies have more fixed costs specifically in administration and overhead, which are out-of-scope here but could be integrated in a further extension of the value... 

In 1991 the vendor estimated the cost of thermal desorption technology to be approximately 80 per ton of soil treated, based on a system that treats soil with 20% moisture content at a rate of 10 tons per hour. This cost includes 20 per ton for depreciation and 60 per ton for labor, utilities, fuel, materials and supplies, and administrative costs (D12872N, p. 44). 

The cost of manufacturing a product includes the manufacturing cost, overhead, and general expenses. Manufacturing cost includes direct expenses and consists of the cost of raw material, containers, operator and labor costs, and utilities (like electricity, steam, water, fuel, etc.). This cost will depend on the production quantity. In contrast, overhead cost will be constant irrespective of the quantity of material that is being manufactured. Overhead cost may include expenses such as employee salaries, medical services, administration, insurance, depreciation, taxes, etc. General expenses consist of freight and delivery, sales, and R D expenses. 

When you first see the administration of an organization it will probably be some variant of this grouping method. You will see the costs of your team or department, all subdivided into project accounts. You will probably not see the depreciation this is handled by the bookkeepers. As we shall see, this grouping is not as sharp as one might wish the division is a bit arbitrary. 

The cost of manufacturing thermoformed, polystyrene foam sheet parts is less dependent on raw material cost than other extrusion processes. This is largely due to the combined effects of additional energy costs required to operate two extruders, heat removal requirements in the secondary extruder, cost of pelletizing (densifying) regrind and the relatively low output of the process for the equipment scale and cost. Typical cost factors for the manufacture of thermoformed polystyrene foam sheet products include raw materials 35%, labor 27%, sales and administration 16%, depreciation 8%, utilities 7% and other 7%. 

Corrosion, the degradation of a material s properties or mass over time because of environmental effects, is a costly reality that effects every industry. A study issued by the Federal Highway Administration (FHWA) in 2002 conservatively estimates the annual direct cost of corrosion in all U.S. industry sectors at US 276 billion. Costs associated with corrosion include cathodic/anodic protection coatings inhibitors corrosion-resistant alloys and materials and maintenance, repair, and depreciation of equipment. Indirect costs, such as lost productivity, environmental or product contamination, planning and design, and lost opportunities, can easily outpace direct costs by factors of two or more. 

Variable costs are ongoing costs proportional to sales volume, and include items like raw materials and delivery charges. Fixed costs are ongoing costs treated as independent of sales volume, although more correctly they are step functions of sales volume. These include items like depreciation and administrative overheads. [15] Some costs, like labor and utilities, fall somewhere in between these two idealizations, and may be treated as either. Note that a fixed capital investment, unlike depreciation, is not an ongoing cost, and hence is not a fixed cost. 

A breakdown according to cost centres reveals that investment costs (interest and depreciation) are the major cost factor of production at about 40%, followed by personnel, energy, consumables, maintenance and administration expenses. A more detailed description including plant price indices, operating expenses and profitability as well as more details on supercritical extraction mechanisms and modelling of solid botanical matrices and a presentation of the Latin American scenario are given in a recent review article [11]. 

The fixed capital cost, Cp, is the capital required to provide all the depreciable facilities. Cp, may be divided into two classes known as the battery limits and auxiliary facilities. The boundary of battery limits includes all manufacturing and processing equipment. The auxiliary facilities are the storage areas, administration offices, utilities and other essential and non-essential supporting facilities. 

Cost of Goods Sold and Operating Expenses. This item includes all the expenses in converting raw materials into finished product, including depreciation, as well as sales, administration, research, and engineering expenses. 

Fixed costs (fixed charges), which are incurred for a long period of time, tend to be unaffected by fluctuations in the level of production activity. They include depreciation of equipment and buildings, interest charges for the investment capital, plant protection, insurance, fixed part of taxes and rents, fixed part of maintenance costs, and executive salaries (administration, overhead). 

Shop Overhead. In addithm to the direct costs involved for materials and labor, idl fabricators must add an indinvt cost often termed the shop overhead or burden. This overhead includes a variety of items, such as the cost of supervision, administration, engineering, sales, utilities, maintenance, depreciation, taxes, and other fixed and indirect costs. These cc ts vary from shop to shop, area to area, and year to year, and are estahlMted hy the ctmrfitions for a particular shop and hy Ifie acA ouiiting pnictice followed. I his overhead usually rang ftxmi 100% to 200% of the total cowit for labor and materials. 

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