The Separable Costs Remaining Benefits Method of Cost Allocation in Federal Multipurpose Projects

The separable costs-remaining benefits method for allocation of costs among the purposes of a multiple-purpose project was devised and recommended by the Federal Inter-Agency Subcommittee on Benefits and Costs in its May 1950 report on Proposed Practices for Economic Analysis of River Basin Projects.10 The objectives of the separable costs-remaining benefits method of cost allocation are threefold. First, to allocate to each purpose any costs which are made necessary because that purpose is...

Distinguishing Between Cost and Price

The whole of this chapter is a struggle to define and understand two terms, cost and price. We ask, what is cost What is price And, what is the economic relationship of cost to price This struggle of definition and understanding is akin to the efforts of philosophers to define mind and matter, and the interrelation of the two, in that branch of philosophy known as epistemology. The kinship gives little comfort. Philosophers, from Socrates to the present, have for more than 2000 years attempted...