Cost of supervision of producing the goods is one the major of indirect costs. This cost can be difficult to attribute if there are multiple products produced in the factory. This cost however can be used in the administrative concept to achieve synergies. Factories normally do not run to the full capacity and these costs are fixed costs for the firm. Thus by integrating work or integrating companies which produce similar products the cost of the supervision can be divided into the products which are higher in number. This can lead to cost reduction for the goods. Synergies form an important part in the administrative concept. Here by integrating the operations of the power, the cost of the supervision is distributed into larger number of products. Direct costs tend to be fixed for the firm and hence more the products produced by the firm higher the cost. However for these costs if there is more number of units produced then the overall cost of the product can be reduced as these are normally fixed costs and need to be incurred by the firm. Supervision costs can lead to high synergies for the firm as it is normally fixed for the firm. Hygiene department is expected to be merged with the Production team. As a result the hygiene part of the food will also be done by the Production team and thus the cost will also be allocated to the Production team.