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One way to look at the cost of outsourcing is to break it into a portion of total cost for a business.
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Indeed, in industries where fixed & sunk costs represent a significant portion of total cost, discriminatory pricing is usually welfare enhancing.
Robinson et al. (2003) also found that a substantial portion of total cost for FM was due to work disability; the prevalence of disability was twice as high among employees with FM when compared with the overall employee population [ 37].
For all 3 types of costs shown in Table 4, a large difference was seen between mean and median values, with the latter often less than half of the mean value, indicating that a small number of LD patients account for a large portion of total costs.
It is not surprising that indirect costs make up a large portion of total costs of T1D, given the typical early onset of the disease.
In both settings, the costs of testing would be only a minor portion of total costs, and testing costs with RCG would be least expensive.
Brown et al., 2003 [ 52] provides evidence that labor costs in hospitals are a much greater portion of total costs than they are for many other industries.
Look at outsourcing costs as a percentage of total cost.
Personnel costs accounted for the largest portion of total costs in these facilities.
The $7.3 billion that VW has put aside to pay for the anticipated legal fallout likely only reflects a portion of the total cost of litigation, according to Dan Bailey, a member of Bailey Cavalieri LLC who specializes in professional liability.
You can claim a portion of the total cost of these services for business purposes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com