Overhead and other costs to perform the process "manage and process collections" per $1,000 revenue
This measure calculates overhead and other costs per $1,000 revenue to perform the process "manage and process collections," which consists of posting entries to respective accounts, preparing accounts for receivables, managing the cash collected by the business from its debtors, and recording it in the books of accounts to provide clear information about the availability of the cash. 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 "manage and process collections" process.
Benchmark Data
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Compute this Measure
Units for this measure are dollars.
(Total cost to perform the process "manage and process collections" * Percentage of total cost of the process "manage and process collections" allocated to internal costs * Percentage of internal costs of the process "manage and process collections" allocated to overhead and other costs * 0.0001) / (Total business entity revenue * .001)
Key Terms
Total Annual Revenue/Net Revenue
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 Cost
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
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.