Managing under full cost is an important part of helping us to really understand what it takes to get things done in this Agency. Full cost is also an integral part of the President’s Management Agenda (PMA).
In simplest terms, full cost accounting ties our direct and indirect costs to our major programs, projects, and institutional activities. In contrast to business as usual, our institutional infrastructure costs such as civil service salaries and the use of our facilities and support services are linked to our programs and projects.
Under business as usual, for the most part our managers were not responsible for procurement dollars, and had not been responsible for the cost of civil servants, Center support services, or the cost of doing business at the Center. Under full cost, where they are designated the appropriate levels of responsibility and authority, our managers are accountable for the following costs:
what we pay our contractors;
as direct labor;
the broad range of services that
support multiple customers at a Center where costs
can be charged to customers based on consumption;
these are costs that cannot be
related or traced to a specific project, but benefit
all activities associated with doing business at the Center;
the cost of maintaining HQ functions.