The Perils of Budgeted Hourly Rates.

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  • Author(s): Fleming, Mark W.
  • Source:
    Seybold Report: Analyzing Publishing Technologies. 10/26/2005, Vol. 5 Issue 14, p7-12. 6p.
  • Additional Information
    • Subject Terms:
      INDUSTRIALISTS; OVERHEAD costs; MARKETING strategy; INDUSTRIAL costs; PRINTING machinery & supplies; PRINTING industry; ACCOUNTING
    • Subject Terms:
      UNITED States
    • Abstract:
      The article reports on the marketing strategy of digital press manufacturers to embrace budgeted hourly rates (BHR) as a standard for cost analysis in order to gain acceptance among traditional print providers in the U.S. Digital press vendors adopted budgeted hourly rates so quickly that they overlooked some serious shortcomings in the method of costing. The traditional account of revenues and costs over a fixed period is the starting point for the development of BHR to estimate the cost of future jobs. In the printing industry. absorption costing is the accounting method most frequently used to present the income statement.