Sharing the Costs of Human Services Transportation (2011) / Chapter Skim
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Pages 17-22
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From page 17... ...
Transportation providers should determine for themselves if working with such agencies constitutes good business practices. Even if rules prevent full cost recovery in some cases, it is still useful to determine the actual cost for each participating agency for purposes of planning and fundraising.
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From page 18... ...
This oversight often results in failing to bill agencies for enough money to cover all costs of the transportation services they are purchasing (including administrative time, facility leasing costs, and vehicle replacement costs) ; this can cause a severe financial shortfall for the provider.
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From page 19... ...
Used together, the 13 categories of expenses fully describe all costs of transportation services. It is important to recognize that not all federal funding programs recognize all of these categories as allowable expenses under their specific funding legislation or regulations.
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From page 20... ...
The distinction between fixed and variable costs is extremely useful in understanding the costs of transportation services, as well as being highly useful for budgeting, managing, and billing purposes. The primary assumption of our Cost Sharing Model is that each line item expense is either a variable cost or a fixed cost.
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From page 21... ...
Generally, most of the direct costs of transportation service are variable costs and are the types most people think about when they consider costs, such as driver wages and gasoline. Shared costs (sometimes called indirect costs)
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From page 22... ...
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.
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