Definition of Terms
Relationship between recoverable costs and material costs
Used to develop standard prices
Recoverable costs divided by sales base = CRR
No comparison basis between businesses
Governed by Regulation & budget guidance
Operations costs, material related costs, forecast inflation, transportation, depot costs, accounting services, cataloging, reutilization & disposal, depreciation
May be adjusted for prior year gains, losses or cash
- Composite difference in price set for market basket of items (standard price) from one year to next
- Describes price change impacts similar to CPI
- DoD budget tool for “topline” control
- Comparison basis between businesses
Cost Recovery Rates (CRR)