The phrase "average overhead cost" is correct and usable in written English.
It can be used in financial or business contexts when discussing the typical expenses that are not directly tied to production but are necessary for running a business.
Example: "To determine the profitability of our project, we need to calculate the average overhead cost associated with our operations."
Alternatives: "typical overhead expense" or "mean overhead cost".
Adding up these three components of overhead, the total average overhead cost per facility amounted to $163 000 per annum.
Interestingly, however, the average overhead cost 'per PAC case' varied relatively little due to the distribution of PAC cases by level of care.
Thus, the total average overhead cost per sample facility amounted to $94 000 per annum and the portion of that total attributable to the care of post-abortion patients was $4500 per facility—$100000 for regional hospitals, $2800 for district hospitals and $1100 for health centres.
In a report last May, the State Administrative Office of the Courts found that a lawyer with average overhead costs would actually lose money on court-assigned cases.
Ceteris paribus, the faster a store can sell its goods, the lower the average overhead costs of each good, and thus the less that must charge to cover the stores average total costs.
Arnold might counter that the discounts observed on black friday are too large to be accounted for by decreasing average overhead costs by a factor of 3 or 4, thus the cost theory cannot explain such deep discounts.
In a report last year on what they called "a deplorable situation," Chief Administrative Judge Jonathan Lippman and Juanita Bing Newton, the deputy chief administrative judge, said a lawyer with average overhead costs would actually lose $9.75 an hour on out-of-court work.
Even when job-order costing is used to tally the costs actually incurred on individual jobs, the overhead rates are usually predetermined that is, they represent the average planned overhead cost at some production volume.
This means that when they calculate the profitability of different products, they average the overhead costs, assigning the same percentage to each product.
The main reason for this is that actual overhead cost averages depend on the total volume and efficiency of operations and not on any one job alone.
The broader the product line and the larger the number and variety of the customers, the greater the use of overhead cost averaging.
