Overhead expenses: How to distribute them in good and bad times

Pace Institute

Abstract

In our pamphlet What a Cost System Should Do for You we called a good system an insurer of profits. Some may question this statement in times of depression when they find their unit costs rising 100% or more, largely because of the increasing overhead on their low or subnormal production. Let us examine the situation by calling to mind those facts and fundamentals with which we are familiar.