The course uses a practical exercise to consolidate learning. It explains direct and indirect costs, fixed and variable costs, allocation of overheads and apportionment.
It also covers direct labour rates and different types of material and labour within a contract. The course looks at how MOD uses a method and allocation of costs questionnaire to assist contractors undertaking single source work to disclose their cost accounting practices. It also looks at the single source procurement framework and at proposals from a contractor’s point of view.
Whilst drawing on a MOD context, the course has wider applicability for non-MOD employees and suppliers. It is part of a suite of MOD courses designed to assist commercial officers' progress from awareness to expert level but has wider applicability to non-MOD and wider government employees.