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Cost Allocation​

The eXpressTransit Cost Allocation screen includes both a three-variable unit cost model and a simple unit cost model so the cost of providing a particular type of service can be determined. 

Three-Variable Unit Cost Model

For the three-variable unit cost model, the process involves distributing year-end line item costs transferred from your general ledger among three components: vehicles, vehicle miles and vehicle hours with the assumption being that the cost of operating a transit system is directly releated to the number of vehicle hours of service provided, the number of miles covered and the number of vehicles that are required to provide the service.  The total costs associated with these three components are then used to determine a cost factor given the known number of vehicles being operated, vehicle miles covered and vehicle hours in service.  Further expansion on this model also allows the cost allocation screen to include a new-service calculator and a basic calculator to determine the percentage of fringe-benefits being allocated to employees in different areas of the transit operations (mechanics, drivers, admin/dispatch, etc.)  And since year-end line item expenses are entered here, the cost allocation screen provides the ability to distribute a percent of each expense to the appropriate line items on NTD forms B-30, F-30 and F-40.

Cost Allocation
 

Simple Unit Cost Model

The simple unit cost model takes a much more simplified approach to determine fully allocated costs and is useful for instances when a neighboring community wishes to purchase service or to get an estimate on service expansion.  This model tends to overestimate expenses but is very convenient when individual line-item costs are not available.

Simple Unit Cost Model
 

Revenue

The cost allocation screen also includes a tab that lets you define revenue line items and their year-end dollar amounts for the purpose of distributing these values to NTD form F-10.

Cost Allocation Revenue Tab