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

This measure calculates systems cost to perform the process "manage and process adjustments/deductions" as a percentage of total process cost. Systems cost refers to a variety of expenses related to computer hardware/software, network and application maintenance, data storage, etc., and all fees paid to full-time, part-time, or temporary employees or independent contractors hired to perform these services. These should not include one-time costs for major new systems developments/replacements. The Process "manage and process adjustments/deductions" includes [Creating and providing funds for necessary adjustments and deductions, including all expenses that were required for the business at certain point in time.]. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process "Manage and process adjustments/deductions".

Benchmark Data

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Measure Category:
Supplemental Information
Measure ID:
105970
Total Sample Size:
2,086 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are percent.

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(Systems cost to perform the process "manage and process adjustments/deductions" / Total cost to perform the process "manage and process adjustments/deductions") * 100

Key Terms

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Systems costs include all expenses, paid or incurred, in conjunction with:

Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

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 (7.4)

  • 9.2.5.1 - Establish policies/procedures for adjustments (10809)
  • 9.2.5.2 - Analyze adjustments (10810)
  • 9.2.5.3 - Correspond/Negotiate with customer (10811)
  • 9.2.5.4 - Discuss resolution with internal parties (10812)
  • 9.2.5.5 - Prepare chargeback invoices (10813)
  • 9.2.5.6 - Process related entries (10814)