CEDAR VALLEY TRANSIT, FINANCE DEPARTMENT
Cost allocation note, attached to costs.csv

The operating_cost column is a FULLY ALLOCATED figure. Each route's number includes a
share of system-wide overhead (dispatch, administration, depot, insurance). Overhead is
allocated to routes in proportion to their direct cost and is about 30% of every route's
operating_cost figure.

Overhead does NOT go away if a route is cut. If Route 7 is eliminated, the overhead
allocated to it is reassigned to the remaining routes. Only the direct cost (about 70%
of operating_cost) is avoidable: drivers, fuel and vehicle maintenance for that route.

If a route's service is reduced rather than eliminated, assume avoidable savings scale
with the hours cut, at the direct-cost rate only.