This measure calculates the percentage of the total cost to perform the "process accounts receivable (AR)" process that comes from personnel cost. The purpose of this process is to process payments due from customers, including all funds received, whether by check or electronically. Personnel cost refers to employee salaries/wages, bonuses, benefits, etc. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "process accounts receivable (AR)" process.
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Percentage of internal costs to perform the process "process accounts receivable (AR)" allocated to personnel costs * Percentage of total cost to perform the process "process accounts receivable (AR)" allocated to internal costs * 0.01
Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.
Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.
Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.
Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.