|dc.description.abstract||This report shows that the overheads of service centres can normally be allocated to profit centres using the "cause and effect'' criterion, When this criterion is used, the overheads of a service centre are allocated in proportion to the outputs provided to each user area.
For some overhead allocations this has been impossible. For example, it is felt that the allocation of Library overheads would be best achieved by seeking a formula which places greatest weighting on the classes of occupation which make maximum use of the Library.
For very general services such as Regional Administration, a general spreader common to all profit and service centres has been required, For a variety of reasons explained in the report, total salaries has been recommended as the spreader.
Allocation of overheads within science sectors using multiple criteria would be difficult and costly to institute, and time-consuming to keep up to date.
The suggestion is that allocation within sectors to science programmes be achieved by using total salaries as a spreader. Unfortunately, salaries themselves are not spread to science programmes currently, but two methods which could achieve this have been noted.
The recommended allocation method is the Step Down Method, which gives partial recognition to services rendered to service centres. With a careful choice of the allocation sequence, it is felt that this method will meet the needs of MAFTech South. [Extract from Executive Summary]||en_NZ