Question

Which of the following services should recover full cost? Why? Which of these should use block-rate or peak-period pricing? Why? For which services is partial cost pricing justified?

a. Public library

b. On-demand genealogy research services offered by public library

c. Public transportation (bus and rail)

d. Public swimming pool

e. Public water park with wave pool and slides

f. Senior citizens center

g. Space for senior citizens to exhibit and sell arts, crafts, and antiques

h. Toll bridge

i. Mosquito spraying to control West Nile virus

j. Public housing

k. Disaster shelters

l. Large item (refrigerators, sofas) disposal in landfill

m. Household hazardous-waste disposal

Answer 1

a. recover full cost because Cost recovery is a basic undertaking of all professional service firms.For firm librarians, cost recovery comes from charging the client for transactional use of databases (i.e., searching and downloading) and for the librarians’ time in utilizing those databases or other resources, such as the print collection or the Internet.

b. block-rate because services is provided and especially for the requirement of client.

c. recover full cost because public transportation is for public welfare.

d. peak-period pricing because swimming pool is luxirous service and and owner doing the business for earning.

e. peak-period pricing because Public water park with wave pool and slides is luxirous service and and owner doing the business for earning.

f.partial cost pricing becasue this service is provided for social welfare.

g. recover full cost becasue this service is provided for boosting up the confidence in senior citizens and providing an way to ran to senior citizens.

h. peak-period pricing because Toll bridge service is provided for the comfort of an customer and and owner should do the business just for earning.

i. partial cost pricing becasue this service is provided for social welfare.

j. recover full cost because public housing is for public welfare.

k. partial cost pricing becasue this service is provided for social welfare.

l.  recover full cost because Large item (refrigerators, sofas) disposal in landfill is for public welfare.

m. recover full cost because Household hazardous-waste disposal is for public welfare.