Full Cost Recovery

Full Cost Recovery is a method of calculating the cost of your services, to inform your pricing decisions.

You need the full budget for your organisation before you can start the calculations.

There are 4 steps to the process:

  1. Identify the different projects / cost centres
  2. Identify their direct costs
  3. Share the overheads, using an appropriate basis of apportionment
  4. Total the costs for each project / cost centre

The unit cost (for each output from the project / cost centre) can then be calculated by dividing the total project / cost centre cost by the number of outputs.

This information can be used to inform pricing decisions (along with comparison to the market rates)

Help with full cost recovery

A range of services provided by WYCAS (West Yorkshire Community Accounting Service) are available to help your organisation with its full cost recovery including:

To find out more contact WYCAS.

Practical exercises to illustrate principles was excellent, I already understood (the) theory but that’s no alternative to actual practice”  

WYCAS customer