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Principles involved in costing
Author(s) -
Economics; David B Evans. PhD. Senior Lecturer in Health
Publication year - 1990
Publication title -
medical journal of australia
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.904
H-Index - 131
eISSN - 1326-5377
pISSN - 0025-729X
DOI - 10.5694/j.1326-5377.1990.tb136982.x
Subject(s) - activity based costing , marginal cost , discounting , payment , capital cost , psychological intervention , actuarial science , overhead (engineering) , process costing , indirect costs , economics , public economics , business , risk analysis (engineering) , computer science , finance , microeconomics , accounting , medicine , macroeconomics , psychiatry , operating system
The main principles involved in costing medical interventions are introduced with reference to a study on the economic costs imposed on Australia by stroke. These principles include the need to establish the viewpoint to be taken in the analysis, the use of marginal rather than average costs and the role of discounting. The concepts of financial versus economic costs, capital versus recurrent costs, overhead costs and transfer payments are explained. This paper should be read in conjunction with the earlier paper on cost‐effectiveness analysis.