Cheatsheet

Steps for Developing Rates

1. Identify products and services
2. Identify customers
3. Estimate sales volume
4. Estimate costs
5. Calculate rate

Service Center Vs. Recharge

Recharge Activities include Common Cost Allocations and Specialized Service Centers for internal users only or internal and external users.

External Sales and Services of Education Related Activities are for external users only.

Service Center Rate Calculation

Direct Cost of Providing Service divided by Projected Number of Billing Units = Billing Rate per Unit

or

$/# = Billing Rate per Unit

Rate Approval Considerations

• Fund balance should be 1/6 or less of expense total
• Rate should not include unallowable expenses
• Expenses should match what is recorded in the GL
• Rates are based on full cost recovery
• Rate plan reflects a net $0