Showing papers on "Overhead (business) published in 1988"
TL;DR: In this paper, a multi-equation econometric model of production-infrastructure interlinkages and adjustments is developed based on a flexible functional form Adjustment dynamics are endogenized and costs of adjustments are explicitly incorporated.
55 citations
TL;DR: The results from using the microcosting system include better understanding of costs, accurate budget projections, confidence in negotiating discounts, and improved efficiency and reduced costs.
Abstract: The basic unit of service in radiology is the examination or procedure and its associated costs such as film, medical and surgical supplies, personnel, equipment depreciation, and overhead. The appropriate allocation of all operating costs to the specific examination types is the purpose of the microcosting system. Microcosting programs use data from hospital expense and payroll systems and data from a radiology information management system. These data are loaded into a computer spread sheet program for the microcosting computations. The results from using this system include better understanding of costs, accurate budget projections, confidence in negotiating discounts, and improved efficiency and reduced costs.
18 citations
TL;DR: A case-based financial planning model is presented here for the purpose of assisting managerial decision making in the strategic areas of case mix planning and pricing, and testing the model with a hypothetical example of a hospital strategic planning problem demonstrates its potential as a decision-making aid.
Abstract: The institution of prospective payment systems by many health care insurers has drawn increased attention to case-based financial planning in hospitals. When hospital revenues are directly linked to patient diagnoses rather than to the types and quantities of services supplied to patients, managers must be aware of the financial implications of different case mixes and must be prepared to influence insurers' price structures. A case-based financial planning model is presented here for the purpose of assisting managerial decision making in the strategic areas of case mix planning and pricing. The computerized model characterizes hospitals as product manufacturers, the product being discharged patients. Diagnosis serves to differentiate the “products”; however, diagnoses are grouped by payor and similar treatment cost experiences to create a limited set of managerially meaningful case types. Diagnostic and treatment costs are also aggregated to facilitate the modeling of the hospital production process. The computerized model projects the number of patients of each case-type and total patient volume, based on estimated patient volume growth rates. The model also projects prices and contribution margins for each case-type, as well as total contribution to hospital overhead. Testing the model with a hypothetical example of a hospital strategic planning problem demonstrates the model's potential as a decision-making aid in case mix planning and case-type pricing. It also reveals several model shortcomings that require further developmental effort.
10 citations
01 Jul 1988
TL;DR: In this article, an economic comparison of the two options concerning four types of projects: seal coats, pavement markers, guardrail repair, and rest areas is performed and the most significant costs associated with the use of state forces were found to be: materials, labor, equipment, overhead, insurance, building-use, and downtime.
Abstract: An important decision for District Engineers is to determine the most efficient assignment of routine maintenance projects to either State forces or private contractors. Frequently this decision may not be fully supported from the point of view of cost-effectiveness. The purpose of this study is to perform an economic comparison of the two options concerning four types of projects: seal coats, pavement markers, guardrail repair and rest areas. The fundamental objective of this research is to quantify and document all significant components of the cost of maintenance projects using State forces or private contractors. The most significant costs associated with the use of State forces were found to be: materials, labor, equipment, overhead, insurance, building-use, and downtime. Alternatively, for contractors the most significant elements found were: bid price, materials, contract administration, and supervision. Total average costs are documented for both in-house and contractor projects on the basis of 403 projects conducted in six selected Districts of SDHPT. It is recommended that a more complete database be developed for more extensive comparisons between the two options.
3 citations
TL;DR: Nuclear medicine procedures appear to be comparable in cost to imaging procedures involving fluoroscopy, and the value is shown of doing enough work to make economic use of the equipment and staff time.
Abstract: The cost of nuclear medicine procedures in a small department run as part of a general imaging service in the financial year 1984/5, using standard commercial nomenclature and concepts (variable, semi-variable and fixed costs), are reported. The necessity for a standard costing system and the use of overhead absorption rates for all three types of cost are emphasized, and the value is shown of doing enough work to make economic use of the equipment and staff time. Nuclear medicine procedures appear to be comparable in cost to imaging procedures involving fluoroscopy.
2 citations
TL;DR: Every item in your company's list of overhead accounts should be subject to question and the fact that a practice is of long standing is not an acceptable reason to continue that practice.
Abstract: Every item in your company's list of overhead accounts should be subject to question. The fact that a practice is of long standing is not an acceptable reason to continue that practice. One important type of cost that must be understood, justified, and controlled is salaried staff expense.
2 citations
01 Jul 1988
TL;DR: In this paper, the authors quantify and document all significant components of the cost of maintenance projects using state forces or private contractors, and find that the most significant costs associated with the use of state forces were: materials, labor, equipment, overhead, insurance, building use and downtime.
Abstract: An important decision for district engineers is to determine the most efficient assignment of routine maintenance projects to either state forces or private contractors. Frequently this decision may not be fully supported from the point of view of cost effectiveness. The purpose of this study is to perform an economic comparison of the two options concerning four types of projects: seal coats, pavement markers, guardrail repair and rest areas. The fundamental objective of this research is to quantify and document all significant components of the cost of maintenance projects using state forces or private contractors. The most significant costs associated with the use of state forces were found to be: materials, labor, equipment, overhead, insurance, building use, and downtime. Alternatively, for contractors the most significant elements found were: bid price, materials, contract administration, and supervision. Total average costs are documented for both in house and contractor projects on the basis of 403 projects conducted in six selected districts of SDHPT. It is recommended that a more complete database be developed for more extensive comparisons between the two options (A).
1 citations
01 Dec 1988
TL;DR: In this article, the authors examined the effectiveness of three specific Overhead Should Cost studies and the impact of those studies on the contractors, and analyzed the effectiveness and impact of these studies.
Abstract: : Should Cost analysis has become a standard tool for the Government to achieve cost reasonableness in a negotiated contract. Recently, contractors in the Defense Industry have begun to question the effectiveness of this analytical process and the necessity of its use. This thesis examines the Should Cost process, its implementation in the area of overhead cost analysis, and analyzes the effectiveness of three specific Overhead Should Cost studies and the impact of those studies on the contractors. Keywords: Theses, Government contract administration.
1 citations
TL;DR: Having recently undertaken a costing exercise for the Radiology Department based on total labour, material and overhead departmental costings (including capital depreciation amounts), the figures produced by Bretland (1988) came as no surprise.
Abstract: Having recently undertaken a costing exercise for our small Radiology Department based on total labour, material and overhead departmental costings (including capital depreciation amounts), the figures produced by Bretland (1988) came as no surprise.
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TL;DR: In this paper, the authors define process costing as a basic costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes to which costs are charged before being averaged over the units produced during the period.
Abstract: Publisher Summary
This chapter describes process costing. The Terminology defines continuous operation or process costing as a basic costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes to which costs are charged before being averaged over the units produced during the period. Process costing introduces the student to the costing of amorphous substances such as chemicals, petroleum products and certain foodstuffs. The essential problem with process costing is the valuation of working in process. The difficulty arises with computing the volumes in stock to produce an acceptable valuation of both finished goods and work-in-progress. The information generated by the process cost accounts will be fundamental to the decision making process. Typically, this will involve the decision whether to process further or sell. The key to the decision is whether or not the margin generated is increased. It is essential to include the time related conversion overheads in the valuations of stocks to comply with both SSAP9 and the requirements of the Inland Revenue, unless a decision requires an increase in the actual cost of time-related fixed conversion overhead, then it is irrelevant to the decision.