Overhead and other costs to perform the process "invoice customers" per $100,000 revenue

This measure calculates overhead and other costs per $100,000 revenue to perform the process "invoice customer," which involves preparing detailed reports of customer purchases and commercial documents between sellers and customers that detail their transactions. Overhead costs refer to those that an organization cannot identify as direct costs of performing a process; these include occupancy, facilities, utilities, and maintenance, etc. Other costs include costs other than personnel, equipment, material, systems, or outsourced costs (e.g., costs for supplies and office equipment, travel, training and seminars). This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "invoice customer."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
105487
Total Sample Size:
1,855 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are dollars.

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(Total cost to perform the process "invoice customer" * Percentage of total cost of the process "invoice customer" allocated to internal costs * Percentage of internal cost to perform the process "invoice customer" allocated to overhead and other costs * 0.0001) / (Total business entity revenue * 0.00001)

Key Terms

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Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 9.2.2.1 - Maintain customer/product master files (10794)
  • 9.2.2.2 - Generate customer billing data (10795)
  • 9.2.2.3 - Transmit billing data to customers (10796)
  • 9.2.2.4 - Post receivable entries (10797)
  • 9.2.2.5 - Resolve customer billing inquiries (10798)