Outsourcing--Friend or Foe?

Next, Start Your Research

Once this categorization process is complete, each category must be researched. Volume of income, as well as impressions or pages, needs to be calculated for each group. Direct costs related to each segment must be determined.

It is also important to remember that your department has a considerable amount of indirect expenses that must be prorated to these categories. Certain product types may require a larger percentage of indirect costs than others. As an example, books and journals are often in production for several weeks and require numerous proofs. A customer service person may spend many hours or days on this one project.