Cover Image

Not for Sale

View/Hide Left Panel
Click for next page ( 23

The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement

Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 22
22 Sharing the Costs of Human Services Transportation There is some flexibility in assigning expenses to specific expense accounts. Because there are no hard and steadfast rules for assigning expenses, good judgment and an understanding of how expenses are incurred are needed. A good expenses assignment should be Logical and understood by all. Defensible and able to pass scrutiny from an outside observer. Clearly expressed in writing. Consistent so that it is useful for watching cost trends over time. Various methods for assigning expenses can be used provided that they meet these objectives. See Chapter 7 for a recommended method. Summary A comprehensive cost accounting system for transportation services should describe in detail all costs that have been incurred and all services rendered, describe in detail how the funds of all par- ticipating agencies have been spent, and equitably distribute the costs of transportation among the participating agencies by allocating the costs according to services received. To do this, a financial chart of accounts that can track all kinds of expenses related to community transportation ser- vices must be developed. A key element of the chart of accounts is the establishment of expendi- ture classes, each of which should have detailed subcategories. When using a full cost accounting approach, transportation providers should understand that costs may be expressed in a number of different ways. The costs of transportation services may be considered as fixed versus variable costs, capital versus operating costs, or direct versus shared costs. Each paired concept has its own value in understanding how costs are incurred and, therefore, how to better manage transportation services.