COSTING METHODS FOR UNBUNDLING SERVICES
A G E N D A
Why do we need to unbundle UDC costs?
Do all UDC costs need to be unbundled?
Do all UDC costs need to be unbundled? (cont.)
Classification of Services
Classification of Services
What factors influence cost estimates?
What factors influence cost estimates? (cont.)
Cost Methodology Definitions
What services should be considered for unbundling?
How are UDC costs normally tracked?
Service Costing is Easier with a Single Service
Some Service Costing Involves Multiple Functions
The Relationship BetweenUDC Functions and Retail Services
Are reliable UDC cost estimates feasible?
What measure of cost is appropriate for unbundling?
What measure of cost is appropriate for unbundling? (cont.)
Developing Unbundles Service Costs
Comparison of Cost Measures
What are the steps for calculating attributable cost savings?
What are the procedures for calculating attributable cost savings?
What is the method for calculating attributable costs?
What are the critical issues?