Our proposed calculation is:
Cost per accepted file = attributable cohort production, review, correction, exception, reinspection and allocated implementation costs ÷ accepted files in that cohort.
Keep internal production labour separate from review labour, and avoid charging the same correction activity to both categories.
Worked example: why the invoice is not the whole bill
The following figures are entirely hypothetical—not supplier prices or market averages.
| Cost for a cohort of 1,000 files | Assumed amount |
|---|---|
| Supplier production charges | $120,000 |
| Carrier review | $20,000 |
| Corrections | $6,000 |
| Attributable exceptions and reinspection | $4,000 |
| Allocated implementation cost | $10,000 |
| Total | $160,000 |
If all 1,000 files are accepted, the calculated cost is $160 per accepted file, compared with a $120 production fee.
If only 800 have passed at the reporting date, the current ratio is $200—but label it provisional, show the 200 unresolved files and update the cohort as work progresses. Do not compare that unfinished cohort with another supplier’s fully matured cohort.
Report released staff hours separately from cash removed from the budget. Do not describe redeployed employee time as a payroll saving without a corresponding budget change.