He said investing in hybrid-car manufacturing was more risky than other types of factory investment because of higher overhead costs.
Ms. Whitman said there were concerns that an independent PC division would lose brand value and face higher overhead costs like real estate and operations.
My guess is that many of these newcomers, with their higher overhead costs and relatively younger, inexperienced sales forces, may have second thoughts about how long they want to remain in Brooklyn.
Hospitals say the higher payments are justified because they treat sicker patients and have much higher overhead costs, resulting from the fact that they are open round the clock and stand ready to respond to medical emergencies.
The drawbacks of a matrix system might include morale problems and conflicting priorities arising from multiple lines of authority, as well as higher overhead costs associated with increased system complexity and redundancy.
Any gain in sales per hour of eyeballing would translate into more revenue, with only slightly higher overhead costs.
Fix: Overhead costs are necessary for most nonprofits, and higher overhead costs may even facilitate better programs.
Furthermore, the Bush Medicare plan included also a $10 billion taxpayer subsidy for Health Maintenance Organizations, to assist HMO's, despite their vastly higher overhead costs, to "compete" against Medicare Part B, by offering Medicare Part D - private insurance companies competing for the business, otherwise called "Medicare Advantage".
If Company A offers a financial return on investment of 7percentt and Company B only offers a return of 4percentt with equal risk, I am going to invest my money in Company A. Do I care if Company A has higher overhead costs than Company B? No: I care about my ROI.
The main reason for non-cost-effectiveness in this case is due to the higher overhead costs in the community-based clinic, which could only approximate costs of a hospital-based review by increasing the number of patients seen in the community-based clinic to 25 patients per day.
