Indirect costs fixed cost

Minimum number of mass exchanger units. Combinatorics determines the minimum number of mass exchanger units required in the network. This objective attempts to minimize indirectly the fixed cost of the network, since the cost of each mass exchanger is usually a concave function of the unit size. FuithetTnore, in a practical context it is desirable to minimize the number of separators so as to reduce pipework, foundations, maintenance, and instrumentation. Normally, the minimum number of units is related to the total number of streams by the following expression (El-Halwagi and Manousiouthakis, 1989). 

It is also possible to understand the fixed capital cost as the sum of direct and indirect costs. Direct costs are the installed-equipment costs plus the price of plants built separately from the production line, where utilities, such as steam, are produced. Indirect costs contain engineering costs, fees, supervision costs, etc. [15] that the investor needs to sustain during plant construction. 

The manufacturing cost consists of direct, indirect, distribution, and fixed costs. Direct costs are raw materials, operating labor, production supervision, utihties, suppHes, repair, and maintenance. Typical indirect costs include payroll overhead, quaHty control, storage, royalties, and plant overhead, eg, safety, protection, personnel, services, yard, waste, environmental control, and other plant categories. However, environmental control costs are frequendy set up as a separate account and calculated direcdy. The principal distribution costs are packaging and shipping. Fixed costs, which are insensitive to production level, include depreciation, property taxes, rents, insurance, and, in some cases, interest expense. 

Each permit issued to a facility will be for a fixed term of up to 5 years. The new law establishes a permit fee whereby the state collects a fee from the permitted facility to cover reasonable direct and indirect costs of the permitting program. 

The direct plus indirect costs give the total fixed capital. 

The other costs (i.e., that 20 percent day-to-day operating cost) will have to be paid in lost productivity. Funding agencies often have fixed dollar amounts for research projects. Whether costs of adhering to GLP s are charged as indirect or direct costs doesn t matter. The total budget determines the amount of effort that can go into a project. Adherence to GLP s will become a part... 

Pumps. Pump base costs were found in Fig. 8.8. Here pump product of capacity, gpm times the respective head, psi, gives a factor that is used to fix each particular pump base cost. Again, as in all the other equipment module spreadsheets, the associated equipment table factors—including piping, electrical, steel, concrete, and instrumentation—are multipliers to derive the full pump module cost. Of course labor and indirect costs are factored as well in Table 8.25. 

Typical percentages of fixed-capital investment values for direct and indirect cost segments for multipurpose plants or large additions to existing facilities... 

Another expense which is included under indirect plant cost is the item of construction or field expense and includes temporary construction and operation, construction tools and rentals, home office personnel located at the construction site, construction payroll, travel and living, taxes and insurance, and other construction overhead. This expense item is occasionally included under equipment installation, or more often under engineering, supervision, and construction. If construction or field expenses are to be estimated separately, then Table 15 will be useful in establishing the variation in percent of fixed-capital investment for this indirect cost. For ordinary chemical-process... 

III. Fixed-capital investment = direct costs + indirect costs... 

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. 

Operating Supplies Indirect Cost 0.0075 X Fixed Capital Cost... 

Indirect costs are those costs incurred that are not directly related to the production rate and consist of fixed and plant overhead costs, as shown in Figure 2.3. 

Many universities will also require payment of the Indirect Costs of a sponsored research project. This payment (generally a fixed percentage of the Direct Cost) is designed to reimburse the institution for rent, electricity, capital improvement and new equipment. 

The capital for designing and building the plant ready for start-up represent the fixed-capital, and includes direct costs and indirect costs. Table 15.4 presents the details. 

Costs which may be measured should cover the direct costs incurred by the health care provider and (or) the patient (i.e. costs of hospitalisation, physician services, pharmaceuticals, etc.). Indirect costs to society of the productivity lost (e.g., due to the patient seeking care or costs resulting from disability or premature death). Data collected may also include intangible costs borne by patients in terms of pain and suffering their inclusion is subject to debate [8, p. 189]. There is an ongoing debate on how to measure direct costs (i.e. marginal, variable, fixed, average, capital and shared costs), whether to included indirect... 

The corrosion costs given so far are only direct costs of corrosion. The indirect costs because of corrosion-associated plant shutdown, lowered efficiency of equipment, and overdesign are additional to the costs cited. Loss of production during plant shutdown for repairs can cost millions of dollars per day. Leaks in pipelines and tanks result in loss of costly product. The leaks can contaminate the groundwater and cause an environmental problem. The costs in fixing this problem can be enormous. 

Table 6.2 Relationship between variable and fixed, and direct and indirect, costs...

An arbitrary ratio frequently used in the comparison of the indirect costs of an incident to the direct costs. Generally considered obsolete since no fixed ratio exists among various types of exposures. 

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