Excerpt from www.NDMA.COM, © 2024 N. Dean Meyer and Associates Inc.
Speech Abstract: Realistic Rates
how to calculate the true cost of your products and services
Many organizations use grossly inaccurate rates to estimate new projects, for a portfolio management process that limits expectations to available resources, as a basis for benchmarking, and of course for chargebacks. First-generation costing models use a simplistic "cascade" approach that introduces distortions which may exceed 100 percent! New second-generation costing models apply costs down, up, and sideways to amortize indirect costs to just the right services. This session explains how to define a meaningful service portfolio, what costs should and should not go into rates, and layers of indirect costs that go into the calculation of budgets and rates.
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