2. COST ACCOUNTING CONCEPTS FOR IS ORGANIZATIONS › 2.5 Differential Charging

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2.5 Differential Charging


Differential charges are adjustments to the total charges for
a piece of work.  They are applied after all resource
consumption has been calculated.  The final amount is
multiplied by a factor of greater than one or less than one,
according to the type of differential charge required.
Differential charges include two related areas:  priority
accounting and zone factors.  Priority factors are applied
before zone factors.  The types of differential charging are
discussed in the following sections:

 1 - Priority Accounting
 2 - Zone Accounting
 3 - Product Surcharge Accounting