encyclopedia

COST

The outlay or expenditure made to achieve an objective. Also see Capital Costs and Operating Costs. (TRB)

COST ALLOCATION

Dividing costs among the various purposes or categories involved. (TRB)

COST ANALYSIS

Review and evaluation of cost data submitted by an offeror in support of a contract price, or a contractor in support of a contract modification, including review and evaluation of the judgmental factors applied in projecting from the data to…

COST CONTRACT

A cost-reimbursement contract under which the contractor receives no fee.

COST EFFECTIVENESS INDEX

Measures the cost of transportation system improvements as compared to the travel-time savings and air pollution reductions that are the result of the improvement.

COST EFFICIENCY

A quantitative measure of efficiency or how well something contributes to the attainment of goals and objectives measured against its cost. For transportation systems, cost efficiency is usually measured as the ratio of the cost of a system to the…

COST OF SERVICE TARIFF

A special type of tariff which allows a gas pipeline to adjust periodically for any overage or underage in recovery of its cost of service (including per unit adjustments for loss of load). In contrast, a normal fixed-rate tariff, while…

COST RECOVERY RATIO

The ratio of total revenues to total costs; the inverse of operating ratio. It is often used for evaluation of alternative plans. (TRB)

COST-BENEFIT ANALYSIS

An analytical technique that compares the societal costs and benefits (measured in monetary terms) of proposed programs or policy action. Identified losses and gains experienced by society are included, and the net benefits creased by an action are calculated. Alternative…

COST-EFFECTIVENESS ANALYSIS

An analytical technique used to choose the most effective method for achieving a program or policy goal. The costs of alternatives are measured by their requisite estimated monetary expenditures. Effectiveness is defined by the degree of goal attainment and may…