Personnel cost to perform the process "manage and process adjustments/deductions" as a percentage of total process cost

This measure calculates the percentage of the total cost to perform the process "manage and process adjustments/deductions" that comes from personnel cost. Core components of this process include creating and providing funds for necessary adjustments and deductions, including all expenses that were required for the business at certain point in time. 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 "manage and process adjustments/deductions" process.

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Measure Category:
Supplemental Information
Measure Id:
105591
Total Sample Size:
1,148 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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Percentage of total cost of the process "manage and process adjustments/deductions" allocated to internal costs * Percentage of internal costs of the process "manage and process adjustments/deductions" allocated to personnel cost * 0.01

Key Terms

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Personnel Cost

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

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.

Measure Scope

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Cross Industry (7.3.0)

  • 9.2.5.1 - Establish policies/procedures for adjustments (10809) - Creating guidelines to follow in case of adjustments to business processes.
  • 9.2.5.2 - Analyze adjustments (10810) - Checking changes made in accounts during the year. Examine the alterations made in final accounts to rectify errors/omissions.
  • 9.2.5.3 - Correspond/Negotiate with customer (10811) - Providing suitable offers to customers. Present different offers (e.g., discounts) available for customers or buyers.
  • 9.2.5.4 - Discuss resolution with internal parties (10812) - Discussing and planning with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
  • 9.2.5.5 - Prepare chargeback invoices (10813) - Creating a mechanism for consumer protection in case of a higher price charged. When a supplier sells a product at a higher price to the distributor than the price they have set with the end user, submit a chargeback to the supplier to recover the money lost in the transaction.
  • 9.2.5.6 - Process related entries (10814) - Recording business transactions as they occur in order to provide a balanced accounts for financial reporting.