Home > Term: Kansas-nebraska (kn) method
Kansas-nebraska (kn) method
A method used to functionalize Administrative and General (A&G) costs. The "KN Method" initially classifies A&G costs as being related to either labor, gas plant, or other. The expenses classified as "other" are allocated to labour and plant on a pro rata basis. This pro rata basis is determined by the ratio of the total labor-related A&G costs and the total plant-related A&G costs to the total of both plant and labor-related A&G costs.
- Part of Speech: noun
- Industry/Domain: Energy
- Category: Natural gas
- Company: AGA
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- Harry8L
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(London, United Kingdom)