Accession Number:

ADA275843

Title:

Using Activity Costs as Building Blocks to Estimate Overheads in a Changing Business Environment

Descriptive Note:

Corporate Author:

MINISTRY OF DEFENCE LONDON (UNITED KINGDOM) DIRECTORATE OF PROJECT TIME AND COST ANALYSIS

Personal Author(s):

Report Date:

1993-06-24

Pagination or Media Count:

25.0

Abstract:

This paper describes two separate but similar techniques- COURSE and SOURCE - which provide a standard approach to the analysis of personnel by function and indicate cost drivers and factors which influence manning requirements. A company functional model has been derived from the analysis of results from these techniques from companies in various defence sectors and ranging in size between approximately 100 and 27000. Analyses of skills mix requirements and control span ratios have been added. The system is readily adaptable to computer processing-and Monte Carlo simulation. This would allow both industry and procurement agencies to generate iterative overheads cost forecasts against alternative business strategies of use by management and in policy decision making.

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE