The Structure Of Administrative Coordination

Organizational structure is the most crucial element for the success of any business. This is because of the way it facilitates and supports the management system of the organization. It is through the structure that specialization and differentiation are attained. For effective management of the employees, different firms employ different structures for the organization that is unique to its operation and the organization culture.

Indirect costs represent overhead costs such as supervision, administration, consultants, and interest, and cannot be associated with any particular work package or activity. These costs vary directly with time, thus any reduction in time results in a reduction of indirect costs (Gray & Larson, 2007, p. 288). For instance, the use of the old vessel will cost $4,000 a week. Based on normal estimates, the old vessel will be used during 15 weeks, which represents $60,000. Afterwards, the use of the new vessel will cost $6,000 a week. Again, based on the normal estimates, it will cost Ericksen 's team $150,000 for a 25-week period. According to the crash schedule, a reduction in the amount of time spent using the old vessel brings the indirect costs to $48,000, and a reduction in the use of the new vessel represents a savings of $24,000. Because indirect costs represent a significant percentage of total project costs, reductions in project time represents very real savings.

Functional structures produce clear career hierarchy organisation members to go after. Managers within a functional structure are generally skilled within their particular unit. They were hiring to lead the units due to their tremendous performance. These managers have a better-quality skill level that facilitate make their profession easier and makes them better capable of to monitor the individual act of their team members to allocate credit, rewards and penalty accordingly.

Direct labor assembly costs are, by their nature, directly traceable to individual products. Therefore the relevant cost driver for this cost is the number of Direct Assembly Labor Hours. The other 21 cost categories are indirect costs.

As defined by the OMB (2004), “Indirect costs are those incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved” (p. 11). The costs in question include international conference, employee recreational activities and counseling services, investment counsel, lobbying, depreciation, and insurance. Despite seemingly

Direct material costs change due to the quantity, range, quality and price of materials required according to the specification for the order each time a unit of the product or service is produced. Direct labour costs are driven by the number of hours required and the rate per hour each product unit that has been set for each labour grade.

5. Indirect Costs: A reasonable allocation of indirect costs in research and development costs. However, general and administrative costs not directly associated with research and development should not be included.[iii]

- Fixed price for services, material, and labor at cost: “Direct materials” means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product or service. (Types of Government Contracts, 2012)

The issue of political involvement for Bureaucratic Administrators lies with the pressure of remaining neutral in their goals, agendas and passions. Many people that there is a distinct line drawn for these administrators to keep politics out of their work. Although, neutrality must be upheld as the administrators work to meet their outlined goals, those goals can only be met through some type of political involvement. The chapter by Milakovich outlines the overarching purpose for public administration to bridge the gap between action and government. This connection is best displayed in the ever-changing role that public administration has played in United States history. When discussing the seven principles for public administration, “Gulick

Dalman and Lei have a problem that should have never happened. Team leaders were overlooking the employees at each site, and the managers were overlooking the entire crew at each site. Having a control system in place for Sandwich Blitz Inc. will alleviate any future problems that may appear. There are four steps to a control system of which Dalman and Lei need to learn in order for their business to run smoothly. The steps include setting performance standards, measuring performance, comparing performance against the standards and determining deviations, and taking action to correct problems and

As the book states, the departmental agencies operate under the President’s Cabinet and the independent agencies operate without the oversight of Cabinet’s secretary. With the Senate consent, The President appoints Cabinet secretaries as well as the heads of independent agencies. Although the independent agencies are a part of the Executive Branch, they are, or should be, independent of presidential control. Departmental agencies are under a direct control of the President.

unit, two types of costs are distinguished. Firstly the direct costs, consisting of the direct

All the costs by a company can be broken into two categories, fixed costs and variable costs. Costs that are independent of output are called fixed costs. Fixed costs remain constant throughout the relevant range and are usually considered sunk for the relevant range. Buildings and machinery are included inputs that cannot be adjusted in the short term. They are only fixed in relation to the quantity of production for a certain time period. The cost of all inputs is variable, in the long run.

A direct cost can be traced to a product or service which includes: Direct labor- which is the cost of the labor that’s directly connected to a product or services. Direct labor is sometimes called touch labor, since direct labor workers typically touch the product while it is being made.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p 39-40) An example of direct labor is an assembly line worker. Labor cost that cannot be physically traced to the creation of products, or that can be traced only at great cost and inconvenience, are considered to be indirect labot.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p 40) Direct material are those materials that become an integral part of the finished product and whose cost can be traced to the finished product.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p39-40) Manufacturing overhead is the third element so manufacturing cost, it includes all costs of manufacturing except direct materials and direct labor. Manufacturing overhead includes items such as indirect materials; indirect labor; maintenance and repairs on production equipment; and heat and light, property taxes, depreciation, and insurance on manufacturing facilities. Only cost associated with operating the factory are consider to be manufacturing overhead cost. A company also incurs other costs associated with its selling administive functions, but these costs are not included as part of manufacturing overhead. Only those

Direct costs are costs directly related to producing the products and services of a project. On the other hand, indirect costs are costs not directly related to a project’s products or services, but are indirectly related to performing the project.