ABSTRACT
This chapter addresses costs that support the entire organization: administration and facilities costs. It presents important ratios from the point of view of administrative costs. Administrative costs are associated with performing administrative and coordinating functions such as the following: accounting, budgeting, performing financial and cash management functions; costs associated with performing procurement and purchasing functions; and costs accrued as a result of managing property. Administrative costs can be reduced by adopting the following strategies: renting facilities instead of purchasing them, curbing travel and entertainment expenses, using technology to "telecommute", subleasing office space, refinancing existing debt, elimination of "paper", sharing marketing expenses, in-house maintenance of equipment, and keeping track of tools and supplies. The chapter deals with the issues related to facilities construction, facilities maintenance, and water supply. In general, facilities operating expenses are classified into three categories as follows: project costs, infrastructure costs, and ongoing costs.
