It is critical to precisely plan, calculate and appropriate the indirect cost while drafting cost allocation plans.
It is equally important to review contracts if they include coverage for indirect costs and if not, then a
funding source must be secured ahead of time. Majority of organizations focus on being awarded with a
grant and delivering upon the KPIs, which loses their focus on the core financial aspects and pre-requisites
to recover indirect costs and benefit from available cost recovery strategies.
uProfyt excels in providing professional services to articulate cost allocation plans after a thorough
understanding of your operations, contracts, grants available and financial systems.
01
The cost allocation
process begins with
the identification of
costs. This involves
categorizing all
expenses into relevant
categories, including
direct costs such as
labor and materials,
and indirect costs like
overhead expenses.
02
Next, uProfyt assigns
the costs to the
appropriate cost centers
using a predetermined
method, such as time
spent, usage, or benefits
received. This process
determines the cost of
each product, service, or
activity, and supports
informed
decision-making on
pricing, production, and
resource allocation.
03
Finally, uProfyt conducts
an analysis of the
allocated costs to ensure
accuracy, fairness, and
compliance. This
particular analysis
involves reviewing the
cost data, comparing
actual costs to budgeted
costs, and identifying any
discrepancies. This
ensures that the cost
allocation process is
transparent and provides
meaningful information
to decision-makers.
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Related services
Cost Management
& Recovery
Cost Management and Recovery is
your right and the impact of letting
it go is a burden on taxpayers.
