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It is crucial that the cost formula represents the relevant costing categories, is reliable, valid, and user friendly in order to provide useful data and be implemented in the shipping industry and at the ship level [17].
The costing categories prone to sensitivity analysis were the cost of transportation, (helicopter or fuel consumption in case of ship deviations) compensation costs to the repatriated seafarer, the cost of managing the repatriation case, insurance premium increase and the cost of recruiting a new seafarer.
On the contrary, the costing categories compensation and insurance premium increase had an impact on the average total costs of repatriation of less than 10% in both sensitivity analysis scenarios for all the four case vignettes and the same applies to the management of the repatriation case with a no more than 3% impact in any of the scenarios.
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The costs are broken down according to cost categories and are presented in 2007 South African Rand.
The GF also uses cost categories in proposal and signed budgets; these, however, are not prospectively used for expenditure tracking by PRs, who retro-fit expenditures to cost categories prescribed by the GF.
Notes: Cost-centers and cost categories are merged to the cost-center groups and cost category groups shown in the cost-matrix.
Cost was based on a micro-costing approach for the intervention and national administrative registries for other cost categories.
Hence three cost categories are defined (Fig. 1).
Identifying proportionately larger cost categories may help focus cost control efforts.
Two cost categories are distinguished and defined as production and non-production costs.
Tables 4, 5 and 6 show the cost categories for fixed, variable and jump-fixed costs.
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