A cost allocation plan is a mechanism for determining the appropriate cost of central service department support (indirect cost) for the services and activities provided by an operating department (direct cost). The TischlerBise cost allocation plan model develops an indirect cost rate representing the ratio between the total indirect costs and the benefiting direct costs. This enables each program or activity to assume its fair share of support costs when the indirect cost rate is applied.
Our model determines the fair share of support costs for each operating department. This framework is critical to accurately reflect the total costs of providing public services and subsequently to recover those costs through user fees, charges, and rates. Our cost allocation plans are developed in accordance with the OMB Circular A-87, and the technical results are documented in a logical and easy-to-understand format.
Our model determines the fair share of support costs for each operating department. This framework is critical to accurately reflect the total costs of providing public services and subsequently to recover those costs through user fees, charges, and rates. Our cost allocation plans are developed in accordance with the OMB Circular A-87, and the technical results are documented in a logical and easy-to-understand format.