Q35. How do we
measure the Unit Cost of Outputs?
Where an activity produces a homogeneous output,
obtaining average unit cost information should simply be a matter of dividing
the total cost of the activity by the number of outputs produced during a
specific period, usually a year. For
example, the Obstetrics and Gynaecology Activity provides maternity
services, and the unit cost of such services can be obtained by dividing the
total cost of obstetrics and gynaecology services by the number of
expectant mothers provided maternal care, or by the number of infants
delivered. Likewise, for a training
center, unit cost indicators might include the average cost per trainee;
and the average cost per course day.
Where an
activity produces a number of different outputs and each type of output relates
to a separate organizational unit in the activity, computing unit cost
information should still be straightforward.
For example, Entry Processing Activity in the Department of Immigration
may issue visas, entry permits and emergency travel certificates. Usually, there would be a separate
organizational unit handling each travel document. The total cost of the visa unit divided by
the number of visas would constitute the unit cost of issuing one visa.
Ministry
of Planning
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