Open AccessOverhead Allocations In Highly Automated Production Processes
Author(s) -
Ralph B. Fritzsch,
Walter J. Berend
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v6i2.6303
Subject(s) - overhead (engineering) , production (economics) , product (mathematics) , process (computing) , computer science , capital (architecture) , risk analysis (engineering) , capital equipment , business , operations management , reliability engineering , industrial organization , economics , engineering , microeconomics , operating system , geometry , mathematics , archaeology , history
The capital intensive nature of automated production processes has increased the proportion of total production costs which are classified as overhead. The increasing importance of overhead costs makes their treatment a central issue in the determination of product cost. This article examines current methods of changing overhead costs to product and suggests possible improvements in the current process.