How to calculate per unit cost?

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This topic contains 3 replies, has 3 voices, and was last updated by  Steve Ressler 7 years, 7 months ago.

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  • #168105

    Kevin Carter
    Participant

    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.

  • #168111

    Steve Ressler
    Keymaster

    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) –

    http://www.ehow.com/how_8194451_calculate-implicit-costs.html

    http://answers.onstartups.com/questions/10624/calculating-loaded-labor-cost-for-roi

    Not an accountant but fixed costs and overhead are usually amortized over a certain number of years

  • #168109

    Dennis McDonald
    Participant

    You need to talk with an accountant. You will be amazed at the variations possible in allocation of other direct costs.

  • #168107

    Kevin Carter
    Participant

    Thanks,

    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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