HIDDEN COST ANALYSIS

HIDDEN COST ANALYSIS

COST DESCRIPTION SEAM DYSFUCTION APPROX. COST

1) VOLUNTEER TIME - MANY OF THE TEACHERS SPEND TIME MANAGEMENT 100 Teachers @ $30 Avg rate TIME AWAY FROM THE SCHOOL PREPARING SCHEDULES, (WORK ORGANIZATION) of pay @ .5 hrs = $1500 FORMS, ETC NEEDED FOR THE PROGRAM.

2) SPECIAL ED STUDENTS - THESE STUDENTS USUALLY WORK ORGANIZATION Cost of Program $4000 / # END UP BEING PLACED IN THE SAME BUSINESS AND IF (OPPORTUNITY COST) of Bus. Ventures 25 = $160 IF THEY WERE EVENLY PLACED THE BUSINESS WOULD BE MORE PRODUCTIVE.

3) LACK OF SUPPLIES - AT TIMES THE PROGRAM DOES TIME MANAGEMENT 4 Days Down Time x 25 items NOT HAVE THE ARTS & CRAFTS SUPPLIES ORDERED (DOWN TIME) @ $3.50 per item = $350 BY THE BUSINESS' AND THIS HOLDS UP PRODUCTION OF ITEMS THAT ARE PUT UP FOR SALE.

4) LACK OF FUNDING - THIS HAS MADE IT NECESSARY TIME MANAGEMENT 300 Items for Sale @ TO SCHEDULE INTERNAL FUND RAISING ACTIVITIES. (WORK ORGANIZATION) $3.50 each = $1050 MORE VOLUNTEER TIME IS NEEDED FROM TEACHERS STRATEGIC PLANNING less expenses of $300 AS WELL AS STUDENTS AND PARENTS. IF THE FUND (RISK) = $750 RAISERS CANNOT BE HELD OR AREN'T SUCCESSFUL, THERE IS A LOSS OF MONEY AVAILABLE.

5) TEACHERS LACK OF BUSINESS SKILLS - DUE TO THIS IN-HOUSE TRAINING 1/3 of Teachers x 100 Teachers DYSFUNCTION OTHER TEACHERS HAVE TO TAKE THE (WASTE) @ 5 hrs @ $30 per hour

TIME OUT TO EDUCATE OR THESE TEACHERS HAVE IDLE (OPPORTUNITY COST) = $4950 TIME NOT DOING WHAT IS EXPECTED.

TOTAL OF HIDDEN COST ANALYSIS --- $7710