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NG: Finance 101 (Cost Centers (where responsibility for control of…
NG: Finance 101
Cost Centers
where responsibility for control of indirect or direct costs is assigned
Currently at the dept level in our OU
masking - characters that identify rate segment and div or func
representative cost centers
accounting only to summaryize/represent each rate pool; employees not assigned
P and V are MS
H is services; C is systems
Rate Types
Bid rate
rate bid on proposal
Billing rate
-rate used on invoices
-lower rate than booking rate because rate changes throughout the year so govt years back said can't bill to those rate due to inaccuracy of the rate
-indirect rates are lower
Booking rate
-rate used on cpr
-cant charge until DCAA audits and approves 5 or 6 years later
????profit is acknowledge incrementally rather than as a lump sum
Total costs
Made up of allowable and unallowable costs
Allowable costs
Combination of Direct and indrect costs make up the WRAP RATE used to calculate Total Cost on a program
Indirect Costs
Employee Benefits
FICA, workers' compensation, unemployment, paid time off, employee welfare, insurance, retirement plan, employee incentive, HR admin staff
Overhead
Recruiting expenses, computer, travel, dues and subscriptions, supplies, telephone, indirect labor, equipment rental
Facilities
Office rental, moves, buildings, furniture, telecom, leasehold improvement, security, facilities surcharge
G&A
Corporate management, bid & proposal, IR&D, level 1 and staff, accounting, DHQ (legal/audit expenses, account management, IIS)
Overhead on Direct materials and Subcontracts (ODMS)
Cost of procurement activities
Direct Costs
ODCs
Travel, reproduction, graphics, equipment rental, temporary services, consultants, supplies, computer depreciation
Subcontracts
Labor, ODCs
Direct material
Computers, Hardware, Software
Labor
Man-hours, Direct labor
Unallowable costs
Paid for by NGC profits, e.g., alcohol, first class travel and morale events
Burden Pools
Pool that collects indirect costs