How is Unit Cost calculated?

Unit Cost represents the total cost incurred for providing a service or handling an incident divided by the total number of incidents. In calculating Unit Cost, it's important to consider all relevant expenses that contribute to the service's overall cost. This includes not only the workforce expenses—such as salaries and benefits for the staff involved—but also infrastructure expenses like hardware and software used and any overhead costs related to supporting the service, such as utilities and administrative expenses.

By summing these costs, you capture a more complete picture of what it takes to provide support, which allows for a more accurate calculation of Unit Cost when divided by the number of incidents handled. This comprehensive approach ensures that all factors affecting expenditures are included, providing a true reflection of service costs on a per-incident basis.