The unit charges the cost of graphic artist's supplies and materials used for administrative units and individual school projects to its own budget. Because labor and other overhead costs such as building operations, maintenance on capital equipment, and depreciation are not factored into Media Production cost comparisons, the district does not really know for certain if Media Production operations are more cost-effective than commercial vendors. For example, supply and material costs for items tracked by Media Production usually are nominal compared to the costs charged by commercial vendors. The same holds true for the district's Print Shop. The main reason for the large disparity in price, however, is that the Print Shop's price comparisons do not include labor, overhead charges, and profit.
Many school districts use an internal service fund system to recoup the full costs of operations.
An internal service fund accounts for the financing of goods or services provided by one department to other departments of the district on a cost-reimbursement basis. Since working capital is required, a contribution transfer of cash or fixed assets from the general fund or a General Fixed Asset Account Group usually is required. Rates charged for services such as graphics design, copying and printing then include all costs for materials and supplies, facility purchase and use, utilities, labor, capital equipment and replacement costs, and all other operating costs. TEA guidelines for internal service funds suggest that these items be contributed to the fund at fair market value, which approximates the net book value. Since internal service funds are proprietary funds, depreciation of fixed assets must be recorded.