Proforma Unit Costs (#5, Summer 1994)

CIS Profile Maintenance includes an item under Unit Cost Development to enable unit cost adjustments to reflect future cost levels.  This enables the system administrator to make specific changes to unit costs for upcoming wage, fuel and other price increases, as well as overhead adjustments to anticipate future volume changes.  

Projected adjustment categories are in the Proforma Adjustments item are as follows:

Change in Freight Volume(+/-%)

Change in Total Equipment(+/-%)

Linehaul Labor Adjustment Ratio

P & D Labor Adjustment Ratio

Dock Labor Adjustment Ratio

Fuel Price Adjustment Ratio

Other Direct Cost Adjustment Ratio

Overhead Cost Adjustment Ratio

More information on the development and use of these ratios can be found in TCG's Technical Paper #4 Prospective Costs and Performance.

Updated February, 2005

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