STEP 6. Allocate the costs that must be recharged to revenue-
producing cost centers. For each cost center a “factor” must be included
to equitably distribute the indirect costs to each cost center. Examples
of costs that would need to be included are animal health activities,
administration, and maintenance of non-cost center space such as
hallways and supply rooms. This distribution factor could be based on
the labor distribution for each cost center, cage/pen space requirements
for each species, or some other factor determined by management. It is
important that this “factor” is truly representative of the indirect costs
included for each cost center, as it has the potential to distribute some
very large dollar amounts.