Cost of Idle HQ Staff Included in Break-even Point Calculation?

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Cost of Idle HQ Staff Included in Break-even Point Calculation?
sweep, Management Consultant, Member
Please let me know whether we should add the cost of the idle staff, not directly related to a project, when they are sitting in HQ, in the fixed cost to find out the BEP of that project. (...) Read more? Sign up for free

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  Include Idle Staff in Break-even Point Analys
Jaap de Jonge, Editor, Netherlands
  The basic principle of a BEP is that you want to give a realistic picture of a project by calculating how long it takes to recover the money that you have invested.
In doing so, you should include all the cost and all revenues that are related to undertaking that project (or not).
Now to your idle staff:
- If this staff is there to be available when needed for this kind of projects, then I think you should include (a reasonable percentage of) their cost. Even if they are probably not needed for this particular project.
- But if they are totally unrelated to a small-scale project and are plain HQ staff, then you shouldn't.

   
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Break-even Analysis
Summary
Forum
Cost of Idle HQ Staff Included in Break-even Point Calculation?
🔥Break-even Point as Maximum Revenue
How to Account for Interest in Break-even Point Calculation?
Best Practices
🥇Time after Break-even Point?
🥈How to Calculate BEP Without Price Given?
🥉Break Even Point formula for a service industry
Break Even Analysis and Cost Benefit Analysis
Breakeven Point Calculation
Further Limitations of Break Even Analysis
Not enough revenues...?
Time for break even..
Break-even Point Example
Break Even Point Calculation of a Bank
Breakeven Formula for Services
Contribution in Break-even Point
Measuring Improvement in Break Even Point
BEP Calculation Possible with Multiple Products?
How to Deal with Owners Withdrawals in Break-even Analysis?
BEP Useful for New / Start-up Businesses
Could There Be 2 or even more Break Even Points?
Break-even Point Analysis when Material Prices Fluctuate


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