CH12 MODE C Allowable Cost Calculation Worksheet

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Related Chapter: CH12. MODE C — Allowable Cost Reverse Calculation Related Tool: MODE C (core/engine/modes/mode_c.py, run_mode_c) Source: docs/features/mode_c_allowable_cost/SPEC.md (Client Input items §1, symbols §2, output metrics §12)

This worksheet uses only the input/output items defined in SPEC.md. Do not add items that are not listed here.

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1. Subject Information

Item	Value
Client / Project Name
Component ID (price_components[].component_id)
Date Prepared

2. Input Values (Client Input)

2-1. Market Price (product.price_components[])

Field	Value	Notes
target_market_price (market price, effective price with discount applied)		Not the list price. E.g., list price 100,000 × 10% discount → enter 90,000
price_includes_vat (true/false)		If true, the value above is VAT-inclusive; if false, VAT-exclusive
currency

2-2. Tax Rate (tax)

Field	Value
vat_rate (v)

2-3. Targets (targets)

Field	Value	Valid Range
target_contribution_margin_rate (t)		0 ≤ t < 1 (t=1 or higher is an ERROR)

2-4. Non-Product Variable Costs (costs.items[], cost_category = variable_selling_delivery)

Enter only items that apply to this component or as shared. If there are no such items, F/b/a are each treated as a confirmed 0.

item_id	basis (amount / rate_of_net_sales / rate_of_gross_payment)	Amount or Rate	applies_to_component	allocation_rule (if shared)

• F = sum of items entered as amounts
• b = sum of rates for items with basis=rate_of_net_sales
• a = sum of rates for items with basis=rate_of_gross_payment

2-5. Actual Direct Cost (costs.items[], cost_category = product_service_direct_cost) — Optional

Enter this if you want to calculate direct_cost_gap. It is not used in the ADC calculation itself.

item_id	Amount	applies_to_component

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3. Calculation (Derivation)

1. N (market_net_sales_ex_vat) = ______________
2. G (market_gross_payment_incl_vat) = ______________
3. D = 1 − t − b − a×(1+v) = ______________
4. ADC (allowable_direct_cost) = N×D − F = ______________
5. actual_direct_cost (sum from 2-5) = ______________
6. direct_cost_gap = ADC − actual_direct_cost = ______________
7. expected_contribution_margin = N − ADC − F − b×N − a×G = ______________
8. expected_contribution_margin_rate = (7) ÷ N = ______________ (must match t)

4. Output Results Summary (Output Metrics)

Metric	Value	Status (OK / UNKNOWN / ERROR)
market_net_sales_ex_vat (N)
market_gross_payment_incl_vat (G)
allowable_direct_cost (ADC)
actual_direct_cost
direct_cost_gap
expected_contribution_margin
expected_contribution_margin_rate

5. Determination Notes

• Is ADC negative? → If negative, this is not a “calculation error” but a definitive diagnosis that “the target cannot be reached under current conditions.” A choice must be made among reconsidering the target rate, renegotiating fees, or reconsidering the price point.
• Is direct_cost_gap negative? → The current cost has already exceeded the allowable cost.
• Is a > 0 while vat_rate is empty? → In this case, ADC is UNKNOWN (because G is required).