Reference no: EM133660624

Homework: Cases on Cost Analysis and Government Decisions

This module on Brightspace includes the following report:

Rivenbank, William C., David N. Ammons and Dale J. Roenigk. 2005. North Carolina Local Government Performance Measurement Project: Benchmarking for Results. Chapel Hill, NC: University of North Carolina School of Government.

Below there are questions about 5 cases that are summarized in an addendum at the end of this report. While the cases use other relevant service information our focus here is on the use of cost information, cost objectives and cost decisions or problems. The questions below are intended to help review the cost analysis and types of decisions discussed in Michel, Chapters 6-9. Each of these chapters addresses a different kind of cost decision encountered by local government managers. For each case below read the case and then answer the case questions.

I. Residential Refuse Collection: City of Winston-Salem, pages 1-2

A. In this case the City looked at other performance measures in addition to cost. Referring to Michel Chapters 6-9. What kind of cost decision or problem is faced in this refuse-collection case?

B. What cost concept or tool was used to measure cost in this case?

C. What action taken in the case led to change? Was there an improvement in service? Were costs reduced? Explain your answers using data from the case summary.

II. Household Recycling: City of Wilmington, pages 7-8

A. In this case the City looked at other performance measures in addition to cost. Referring to Michel Chapters 6-9. What kind of cost decision or problem is faced in this household recycling case?

B. What cost concept or tool was used to measure cost in this case?

C. The Table at the bottom of page 7, refers to - "go away" costs for privatization comparison. Based on the description of these costs in the paragraph above the table - what cost term would Michel assign to these costs?

D. What action taken in the case led to change? Was there an improvement in service? Were costs reduced? Explain your answers using data from the case summary.

E. If the city had decided to continue providing the recycling service "in-house" do you think their unit costs would have gone up or down? Explain your answer.

III. Police Services: City of Greensboro, pages 9-10

A. In this case the City looked at other performance measures in addition to cost. Referring to Michel Chapters 6-9. What kind of cost decision or problem is faced in this police service case?

B. What cost concept or tool was used to measure cost in this case?

C. What action taken in the case led to change? Was there an improvement in service? Were costs reduced? Explain your answers using data from the case summary.

IV. Fire Services: City of Hickory, pages 15-16.

A. In this case the City looked at other performance measures in addition to cost. Referring to Michel Chapters 6-9. What kind of cost decision or problem is faced in this fire service case?

B. What cost concept or tool was used to measure cost in this case?

C. What action taken in the case led to change? Was there an improvement in service? Were costs reduced? Explain your answers using data from the case summary.

V. Fleet Maintenance: City of Concord, pages 17-18.

A. In this case the City looked at other performance measures in addition to cost. Referring to Michel Chapters 6-9. What kind of cost decision or problem is faced in this fleet maintenance case?

B. What cost concept or tool was used to measure cost in this case?

C. Did the action taken in the case lead to lowering service cost? Did service improve? Explain your answers using data from the case summary.