PRODUCTION SCENARIO
A pilot produces 1,000 drafts for $120 in model costs and $180 in review costs. Reviewers accept 600 drafts. The pilot measure includes only these two costs.
What is the cost per accepted draft?
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Answer: $0.50
The measure includes both costs: $120 plus $180 is $300, spread over the 600 drafts reviewers accepted, so $0.50 each. $0.30 divides the same $300 by all 1,000 drafts instead of the accepted ones. $0.20 charges only the $120 of model spend against accepted drafts and drops the review cost. $0.12 is model cost per draft generated, the vendor invoice rather than the business outcome. State what the measure excludes before comparing it with full production cost.