August 20, 2012 at 7:10 pm #168105
Does anyone in a government agency out there (federal, state, or local) have advice or best practices when it comes to calculating the per unit cost for processing (in this case an application)?
(For example, passport applications, Social Security, student loan consolidation, etc.)
Specifically, I’m looking for how other agencies incorporate their fixed costs, overhead, rent, annual/sick leave, etc. into the per unit cost of processing an application.
Thanks in advance.
August 20, 2012 at 7:35 pm #168111
Depends how detail you need.
For some items like employee costs, it can be easier to pick a number like 30% extra over salary to guess fully baked costs (health insurance, 401k, sick leave, lawsuits) –
Not an accountant but fixed costs and overhead are usually amortized over a certain number of years
August 20, 2012 at 10:37 pm #168109
You need to talk with an accountant. You will be amazed at the variations possible in allocation of other direct costs.
September 25, 2012 at 8:13 pm #168107
I’m still hoping that someone with like Social Security or State’s Passport offices can provide some ideas or examples.
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