Why does the Shorter Schedule of Cost Components not include Working Area Overheads?
It has the percentage for People overheads instead. This covers the equivalent of the percentage for Working Area overheads AND other items in ‘4. Charges’ of the full Schedule of Cost Components.
The reason for the more extensive coverage is that the Shorter SCC is only used for assessing compensation events under options A and B which should, in theory, be less under these options than under the cost-based options C to F.