E. Rate setting is the use of cost analysis to set fee structures for individual cost
centers.
F. Cost centers are accounting devices for accumulating expenses that have
common characteristics. Some examples of cost centers are cage washing,
technical services, transportation, mouse husbandry, dog husbandry, and other
centers that can stand alone. Cost centers should be as specific as possible and
separated into categories that supply information that is truly needed.
Cost centers provide an equitable justification for charging users of services
for the service or product provided. Cost centers also provide the director/
manager a means of control and planning. They measure the cost of an activity
against its value. Cost centers allow comparison between two or more like units
for the cost of a service. They also allow a better justification of service fees
to user groups and sponsors.