What is the Surcharge/Cost Plus method used for?

The Surcharge/Cost Plus method is specifically designed for determining costs related to reference or send-out testing. This approach allows laboratories to accurately evaluate the expenses associated with tests that are performed by external laboratories or reference facilities.

By utilizing this method, a laboratory can account for the direct costs of testing, such as the price charged by the reference laboratory, along with additional overhead costs and a markup to ensure that the laboratory remains profitable. This ensures that all expenses related to procurement and sending out samples are fully captured and passed onto the clients appropriately.

This method is particularly beneficial in managing cases where prices are not fixed and may vary based on the specifics of the tests being sent out, thereby allowing for flexibility and precise expense tracking in laboratory management.