OVERHEAD COSTS.

Press, Volume LXIII, Issue 19146, 1 November 1927, Page 9

OVERHEAD COSTS.

REDUCTION ESSENTIAL. Some of the, time at yesterday's session of the annual conference of tho Associated Chambers of Commerce was ocoupied in a .discussion on ways and means of reducing overhead costs. Mr A. 0 "Wilkinson (Canterbury) said that the Dominion was paying an enormous amount in overhead costs, which was directly due to Government action. The Arbitration Court was .1 further means of increasing overhead costs, and wages, in any of the various expenses of carrying, on a business entered very largely. In New Zealand many business houses did not know what overhead expenses meant, mvl there was need for education on the point. The executive might take up the matter, and give it some enquiry. Mr W. Machin (president} said thoy might be able to obtain the services of a few experts to go into the question.

Mr W. J. Butler (Westland) said wages were not included in overhead costs, but should he included in the units of production. He said the "constants" in timber production amounted to about 25 per cent, of the total. It was very essential that a clear distinction should, be made between constant costs and appurtenant costs. (Applause.) Mr Wilkinson said the Arbitration Court regulated "wages, including thow» for clerks' guilds, which expenses enme into the overhead costs. , Th* matter was referred to the executive.