Costs, administration indirect

Indirect costs Administration, marketing, accounting, legal, insurance, office 10.10... 

Determine the indirect annual costs. The indirect annual costs, consisting of property taxes, insurance, and administrative charges are given in the problem statement as 5.2% of the total capital investment. Thus,... 

Labour, Maintenance and Administrative Costs. As a general rule, labour and maintenance were each charged at the rate 3% of the capital per annum. For labour, this included both direct and indirect labour costs. For maintenance, this included both materials and labour. Over the past decades, many companies have made attempts to reduce the operating labour and maintenance charges. Labour can be reduced by extensive computer control. However, the success or otherwise, in reducing the maintenance charge is difficult to quantify, several operations have suffered major problems claimed to be due to the cutbacks in maintenance costs. Administrative costs are basically insurance and local land taxes. A value of 1.5% of the fixed capital as an annual charge was used. 

Administrative Costs WEEKLY INDIRECT DRIVER COSTS ... 

These are many and varied and are often difficult to predict. Some indirect costs may be included, and thus hidden, in other costs, e.g. labour costs, production and administration costs. It is common for indirect costs to be ignored owing to the difficulty experience in separating them from other costs. Some indirect costs, however, are simply to quantify. These are outlined below. 

The cost of TSCA administration is high. Hundreds of people are now employed in the Office of Toxic Substances. Direct public and private costs total millions of dollars and there may be other indirect costs that cannot be estimated. Certainly some things could be done to get more for our money. The PMN system could be modified to spend less time on low-risk chemicals. The ability to regulate existing chemicals should be increased. Voluntary compliance by industry should be stressed because it is cheaper and more efficient, but this must obviously be backed up by the possibility of regulatory action by the government. 

Some costs are omitted from this analysis to facilitate site-specific use in site comparison. The laboratory indirect expense rates for common support and materials were omitted, as were engineering, quality assurance, administrative costs, and taxes on services and materials (D189097, p. 13). 

Secondly, there is variable expenditure (production, recurrent, working or operating costs) which includes the costs of supplies and stocks of raw materials, emphasising the need for efficient monitoring of the mass-balance of the process, energy, labour and overheads. Overheads include direct overheads such as rates, insurance, administrative staff etc. and indirect overheads such as a share in head office salaries and upkeep. This is an important distinction because whereas local management can have little direct influence in overheads costs and capital and utility expenses, they can have a big control over variable expenditure. 

Cost-minimization analysis is a tool used to compare two or more treatment alternatives that are assumed to be equal in efficacy. It simply compares the direct and indirect costs of treatment alternatives in dollars and does not consider the outcomes of the treatments (because they are assumed to be the same). Examples could be to compare the costs of intravenous versus oral dosage forms of the same drug or hospital versus home administration of intravenous pain management. 

An acceptable plant design must present a process that is capable of operating under conditions which will yield a profit. Since net profit equals total income minus all expenses, it is essential that the chemical engineer be aware of the many different types of costs involved in manufacturing processes. Capital must be allocated for direct plant expenses, such as those for raw materials, labor, and equipment. Besides direct expenses, many other indirect expenses are incurred, and these must be included if a complete analysis of the total cost is to be obtained. Some examples of these indirect expenses are administrative salaries, product-distribution costs, and costs for interplant communications. 

A 70,000 ton/year, 22,000,000 plant was started up in 2001. Since then, it has been operating at capacity for an average of 7200 h/year. It is staffed by 25 full-time production workers ( 32/h), two maintenance workers ( 35/h), and four shift supervisors ( 39/h). All labor rates include payroll and plant overhead. The process consumes 530 kilowatts of electricity ( 0.045/kWh), 50,000 gal/h of water ( 0.15/thousand gal), and 8.75 tons/h of feedstock ( 0.78/lb). Maintenance materials are estimated as equivalent to maintenance labor. Royalties amount to 4.20 per ton of product. The property taxes, insurance, and administrative charges total 5.2% of the total capital investment. Find the direct and indirect annual costs for the plant. 

Laren Tolbert, Georgia Institute of Technology I ve probably been an administrator too long, which involves indirect costs. You made the comment about faculty supporting all the administrators. But my administration would agree that these are real costs, which they are. William Wakeham talked about a plan in which the full costs were paid, although you never said exactly what your indirect cost rate is. 

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. 

The different attributes of the centralised and decentralised systems make cost-benefit comparisons difficult. The European procedures have not as yet produced real dividends in terms of cost efficiencies through economies of scale and there is a need to reduce the administrative burden where this does not have public health implications (for example, in relation to minor variations to existing approvals). National authorities are under significant resource pressures and the relative funding of the centralised system by the Community and indirectly by national agencies is an increasing cause for concern in some Member States. 

Industry, on the other hand, has never been a significant contributor of research facilities other than its own in-house laboratories (207).2When industry has provided research grants or contracts to academic institutions, its support for indirect and overhead expenses (which pay for facilities and administration) has generally been below the standard Federal contribution for such costs. 

Indirects. Engineering home office expense includes the salaries paid to design engineers, computer time, administration of the contract, records, and drawings for this piece of equipment. This is usually about 10 to 20% of M or 9% of the L + M cost, with larger values needed for small projects. 

Such a value is constituted for about two thirds (almost 4,000 EUR/ha, 0.17 EUR/Kg) of direct costs raw materials (8.3%), labor (11.6%), insurance premium (5.9%), and capital consumption costs (9.0%). The remaining 1,734 EUR/ha are indirect costs (land maintenance and insurance charges, general and administration costs, welfare contributions, taxes, financial charges and rents, etc.). 

Returning to the Capital Estimate Report, material and manpower costs associated with G and A (General and Administrative) Overheads, 18,200 and 4,600, are obtained from line 13, and material and manpower charges associated with Contract Fees, 21,900 and 16,500, from line 14. These sum to 61,200. The contractor engineering and indirect costs are in row 15, BASE TOTAL, in the first column, under DESIGN ENG G AND PROCUREMENT K-USD, and in the fifth column, under CONSTRUCTIONINDIRECTSK-USD. These are ... 

Indirect costs of an injury or illness may include o Administrative costs — This includes phone calls and personnel hours needed to deal with the injury or iUness that would normally be spent on other daily activities. 

The cost of workplace injuries is enormous. In 1992 the U.S. economy lost 115.9 billion from work-related accidents 62.5 billion from wage and productivity losses, 22.0 billion from medical costs, 14.5 billion from administration expenses, 3.4 billion from motor vehicle damages, 10.2 billion from indirect employer costs, and 3.3 billion from fire losses (National Safety Council 1993). In addition to monetary losses, work injuries cause pain and suffering and frequently result in permanent disabilities that impede the normal enjoyment of life. The National Safety Council (1993) estimated that for every dollar of monetary loss accidents lower the quality of life on average by two dollars. With a two-to-one quality-of-life loss ratio the total cost of workplace accidents in 1992 was 347.7 billion, about 5.8 percent of 1992 U.S. GDP. 

---