Some of these concepts are:
This type of costs occurs when work has to be reprocessed due to deficiencies in the product or service. One does not foresee costs due to inefficiencies and they tend to be high when it comes to reprocessing.
Personnel turnover involves a learning curve that affects production performance. Both leaving the company and changing tasks within it affect productivity and therefore we have higher costs or lower revenue if it is a service valued in man hours.
Today many companies have adopted the paperless concept, where most of the papers required for management are hosted in the cloud, however, there is still a lot of paperwork in sectors such as Administration & Finance or Human Resources. These costs of stationery, printing, filing and management are usually a hidden cost when putting together the budget.
Unless it is a company in the logistics sector, the costs associated with logistics (internal and external) are often not considered in the preparation of the budget and are usually high.
Many times, expenses for maintenance or building incidents that require investments throughout the year are not considered. This often affects the budget, since they are expenditures that cannot be postponed, and if they are incorrect or not budgeted, they usually generate significant deviations.
This is one of the most representative hidden costs when one does not foresee late collections, interest for financing with AFIP, or payment plans for charges and contributions. Many times they are not taken into account and are usually high, affecting the economic budget and more than anything the financial one.
These are hidden costs that are very difficult to measure. For example, with obsolete equipment I have higher energy consumption and that leads me to have less energy efficiency. It is important to analyze the investment in the equipment versus the energy consumption to see if a scheduled renewal of the same is advisable.
This type of cost is more subjective, but it still generates high additional costs when time is wasted in interpreting what the client really wanted.
When the entry of resources into the company is contemplated, but the legal software licenses associated with each new entry are not contemplated, we have a hidden cost at the time of regularizing them. This occurs when the company is in an industry where it grows very quickly and the growth is not accompanied by the necessary calculations associated with the support infrastructure.