Rates

The sales prices on the goods or services sold to users are called rates. Rates should be calculated to recover budgeted costs. Budgeted costs are defined as Ledger 2 expenditures being budgeted for the upcoming fiscal year (excluding bad debt expense and unallowable costs) plus or minus the projected current year ending fund balance. Once established, rates are billed to a user based on the benefit received.

Examples of rate allocation methods are:

Consumption/Output Method

Cost of Sales Method