This program distributes the indirect (and therefore otherwise unchargeable) costs of your
business evenly over the hourly cost rates for your direct plant and personnel. It might help to first
read job costing - setting up.
Indirect costs: enter here the total of all costs which your business incurs in a month which are
NOT covered by one or more of the following categories:
· Personnel costs directly chargeable - including pension, share of rent/rates/heat etc. These
should be included in their monthly budgeted costs.
· Machine and Press costs directly chargeable - including depreciation, loan interest,
consumables, servicing, share of rent/rates/heat etc. These should all be included in their
monthly budgeted costs.
· Paper, Board, Ink, and other stock costs (unless for your own use). These should be totalled
with the Externally invoiced direct costs and entered below.
· Externally invoiced direct costs such as outwork and one-off material purchases. These
should be totalled with the Paper and Board costs and entered below.
Direct external costs: how much does your company spend on paper, board, ink, outwork etc. in
the average month? You should exclude such items as tea & coffee, computer maintenance,
press maintenance etc as these are not directly chargeable to the Customer.
Pressing 'Next' reveals:
This screen shows the markup you ought to be applying across the board to allow for the indirect
cost of the company. Pressing 'Next' reveals:
Here you should enter the markups you want to include in these categories of expense to allow
for absorbing indirect costs. The figure you enter here for paper and board, for instance, will
supersede the figure you currently have as a material markup default. If the percentages you
enter do not add up to the total to be absorbed, they will be automatically adjusted by spreading
the difference over the direct internal (i.e. people and machines) costs.
Pressing 'Next'
at this point will cause the system to update the absorbed cost part of all of your
personnel costs, presses, and other machines. Please note: this will NOT affect the prices you
use in your estimates.
