Net cost

Net cost
See also

The term of a net cost determines all paid premium minus their price value and any dividends produced by the policy by the time when diversity is being estimated. The comparisons of a net cost are being made every 10 or 20 years by special insurers who supply life insurance[1]

Statement of a Net Cost[edit]

The Statement of Net Cost is meant to view the number of costs for operating the federal government (which includes federal department and federal agency). Costs are provided on an accrual basis of accounting while cash is hand out regardless of recognizes expenses. With this result, the cost information is provided by the accounting period which might be connected to the rendered services, produced goods, and the outcomes of the programs of federal departments and of government's agencies for the same time. The corresponding prices are eliminated from the cost of government operations because of the fact that actuarial calculations for social insurance prices are not described as liabilities on the Balance Sheet. Income made by federal departments and federal agencies from their action (as in example fees payment for postal services and stamps and admissions to national parks) is taken away from their cost of operation, and this is a crucial idea for the Statement of Net Cost. The net cost is the measure which should be the fund from tax revenue and, if necessary, borrowing.

Readers might use facts from this statement to recognize such things as[2]:

  • how much the federal government's net cost decreased or increased from the last fiscal year
  • which departments or agencies accounted for the majority of the federal government's net cost
  • which department or agency accomplished the biggest increase and which accomplished the biggest decrease in net cost from the last year.

The Net Cost of postsecondary education[edit]

The term of net cost determines a postsecondary education which is the actual annual cost paid by the student's family and a student. It is calculated by a report of a student who noted the total annual cost of attendance (room, tuition and fees, miscellaneous expenditures and board) less students aid received if any. In the way of student aid is given mainly on the basis of capability to pay and cost of presence it should follow that specific cost or net cost would differ by the capability to pay the cost of presence. At all levels of cost of presence (in here calculated with regard of a type of organization), the net cost dropped as the capability to pay (or family income) becomes smaller in order of promoting entry to postsecondary education). To give an example, four-year private education that had a yearly net of $9,200 for students with the best capability to pay, had a yearly net cost of around $2,000 for students with the worst capability to pay. Two-year private education with a yearly net cost of around $2,500 for students with the best capability to pay had a yearly net cost of around $1,200 for students with the worst capability to pay[3].


  1. (A.E.Boardman, D.H.Greenberg, A.R.Vining, D.L.Weimer 2018)
  2. (D.M. Walker 2005)
  3. (J.Noell 1991)


Author: Julia Lech