Topic
Pre-determined overhead rate
About: Pre-determined overhead rate is a research topic. Over the lifetime, 73 publications have been published within this topic receiving 948 citations.
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TL;DR: In this paper, the authors used cross-sectional data from hospitals in Washington State to test whether overhead costs are proportional to overhead activities and found that the average cost per unit of activity overstates marginal costs by about 40% and in some departments by over 100%.
192 citations
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TL;DR: In this paper, the authors examine the time-series behavior of overhead costs in hospitals and find that more accurate predictions of changes in costs are usually generated by assuming a cost will not change at all (except for inflation) than by assuming that the cost will change in proportion to changes in activity.
Abstract: Using data from hospitals in the state of Washington, we examine the time-series behavior of overhead costs. We find that more accurate predictions of changes in costs are usually generated by assuming a cost will not change at all (except for inflation) than by assuming that the cost will change in proportion to changes in activity. We also find that nearly all of the effect of a change in activity on costs appears to occur in the same year as the change in activity. Finally, using a multi-period regression model we find that the proportion of variable costs in the hospital overhead accounts is apparently very modest. These results suggest that costing systems, such as activity-based costing, that assume costs are proportional to activity, will grossly overstate relevant (i.e., incremental) overhead costs for decision-making and performance evaluation purposes.
187 citations
TL;DR: Empirical validity of the claim that overhead costs are driven not by production volume but by transactions resulting from production complexity is examined using data from 32 manufacturing plants from the electronics, machinery, and automobile components industries.
180 citations
TL;DR: In this article, the authors investigated the overhead cost practices of construction companies in Saudi Arabia and found that the average percentage of company overhead costs to project direct cost is greater than 10% due to delayed payments, shortage of new projects, cost of inflation and governmental regulations.
88 citations
15 May 2011
TL;DR: This study shows that with just a minimal fixed power consumption overhead factor for each cell, it is never optimal to build a cellular network as dense as possible from an energy consumption per area point of view.
Abstract: Energy efficient radio networks, i.e. radio base stations and transport network mainly, are something that becomes more and more important with the increase of installed base stations globally. This study evaluates the total base station energy consumption per area ($W/km^2$) for different cell sizes (deployments). This is done by theoretical calculations assuming a certain minimum received power at the cell edge regardless of cell size and channel model. This study shows that with just a minimal fixed power consumption overhead factor for each cell (e.g. 0.1 W per cell), it is never optimal to build a cellular network as dense as possible from an energy consumption per area point of view. Only when there is no fixed overhead at all, the optimal cell size from an energy per area perspective, is as small as possible. With a rather low fixed overhead (1-5 W), the optimal inter-site-distance is around 300-700 m. With the current (high) fixed power consumption overhead, as large inter-site-distances as possible are the most energy efficient.
33 citations