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...