The significance of indirect costs—application to clinical laboratory test economics using computer facilities

The significance of indirect costs in the cost price calculation of clinical chemistry laboratory tests by way of the production centres method has been investigated. A cost structure model based on the ‘production centres’ method, the Academisch Ziekenhuis Groningen (AZG) 1-2-3 model, is used for the calculation of cost and cost prices as an add-in tool to the spreadsheet program Lotus 1-2-3. The system specifications of the AZG 1-2-3 cost structure model have been extended with facilities to impute all relevant indirect costs to cost centres by aid of allocation rules, which can be chosen freely. The inference is made that as indirect costs play a more important part in decision-making processes concerning planning and control, the specification of the relation to the cost centres should be determined in a more detailed way. The AZG 1-2-3 cost structure model has therefore been extended in order to increase the significance as a management tool for laboratory management.