Overhead Cost Management -

An easy guide

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1. The general cost structure

2. Overhead costs are rising in relation to other costs.

The changes in the cost categories with time

Note: These figures may not be exactly right for your company but they won't be far out. The direct labour cost is much less than the overheads cost but we still use direct labour hours for cost allocations!

 

3. The management efforts

4. The biggest costs have the least efforts to reduce them - are we trying to get it wrong?

5. What are the new rules?

6. The ABC's of accurate costing

7. What are the overheads that we can manage?

For some hints on what to do next see the Overhead Costs "Hit List" - Things to do Next.

 

Last edited: 11/03/10 

Tangram Technology Ltd. 1998

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