DNRC does not track costs for individual projects. An annual cash-flow analysis is conducted 

 on the DNRC forest product sales program. Revenue and costs are calculated by land office and 

 Statewide. Revenue-to-cost ratios are a measure of economic efficiency. A ratio value less than 

 1.0 means costs are higher than revenues (no trust contribution). A ratio greater than 1.0 means 

 revenues are higher than the cost (a positive trust contribution). A ratio equaling 1 .0 means that 

 the costs equal the revenues. Revenue to cost ratio for Southwest Land Office and the 

 Department as a whole are presented in the following table. 



Table 3-7 

 Annual Rate of Return 



Total revenue is revenue from timber sales, permits. Forest Improvement and road maintenance. 

 Total cost is the sum of timber operating and general administration. 



67 



