Similarly, non-Trademark organizations also capture expenses against PPA combinations that define the type of work performed by the support organization. These expenses are then allocated in each support organization business model to activities based on drivers. Allocation of expenses from outside the Trademark organization is a crucial step in the development of the fully burdened expense of Trademark processes and activities (see Section 4: Fully Burdened Expense). The cost driver selection for assigning expenses follows the guidance set by the FASAB Managerial Cost Accounting Standard #4. The hierarchy of driver selection is based upon the following, in order of preference: Direct (Code-Driven): At the USPTO, the majority of expenses are driven based on the Program, Project and Activity Codes (PPAs) which are reported by employees in the time reporting system (compensation) as well as on requisitions (non-compensation). The tasks identified by the PPA for labor or on requisitions are in support of a particular activity and program. An example of a PPA direct trace driver is Budget Formulation and Justification for the Trademark business unit. This expense is incurred in the Office of the Chief Financial Officer based on time spent in support of the Trademark business unit charged to the PPA code and is directly assigned to the Trademark organization through the model. Cause and Effect: Expenses are also assigned on a cause and effect basis if direct trace is not readily available. Examples of cause and effect drivers are workloads such as: Based Drivers: # of transactions, # of vouchers, # of servers by business unit, etc.
Similarly, non-Trademark organizations also capture expenses against PPA combinations that define the type of work performed by the support organization. These expenses are then allocated in each support organization business model to activities based on drivers. Allocation of expenses from outside the Trademark organization is a crucial step in the development of the fully burdened expense of Trademark processes and activities (see Section 4: Fully Burdened Expense). The cost driver selection for assigning expenses follows the guidance set by the FASAB Managerial Cost Accounting Standard #4. The hierarchy of driver selection is based upon the following, in order of preference: Direct (Code-Driven): At the USPTO, the majority of expenses are driven based on the Program, Project and Activity Codes (PPAs) which are reported by employees in the time reporting system (compensation) as well as on requisitions (non-compensation). The tasks identified by the PPA for labor or on requisitions are in support of a particular activity and program. An example of a PPA direct trace driver is Budget Formulation and Justification for the Trademark business unit. This expense is incurred in the Office of the Chief Financial Officer based on time spent in support of the Trademark business unit charged to the PPA code and is directly assigned to the Trademark organization through the model. Cause and Effect: Expenses are also assigned on a cause and effect basis if direct trace is not readily available. Examples of cause and effect drivers are workloads such as: Based Drivers: # of transactions, # of vouchers, # of servers by business unit, etc.
USPTO%20Fee%20Setting%20-%20Activity%20Based%20Information%20and%20Trademark%20Fee%20Unit%20Expense%20Methodology.docx