The system operator shall calculate the cost by the full cost method.
The full cost shall include the following items:
Operational cost of cable radio and television enterprise: shall refer to the operation cost which can be directly identified with the cable radio and television business, it also contains the transmission network component cost, supporting function cost, and general management function cost which can be directly identified with the cable radio and television business.
Transmission network component cost: shall refer to the subscriber lines, transmission, or other equipment cost related to the network operation which cannot be directly identified with the cable radio and television business.
Supporting function cost: shall refer to the relevant cost which cannot be cannot be directly identified with the cable radio and television business, but is necessary for providing subscription service or network supporting service in the operation of cable radio and television business.
General management function cost: shall refer to the relevant cost which is not directly related to the operation cable radio and television business, but is necessary for the function of the total operation for the cable radio and television business department.

The cost pooling and allocation shall be based on the actual cost.
The system operator may, depending on the need of the business and management, use the standard cost system. When using the standard cost system, the cost shall be accounted by the standard cost, the difference between the actual cost and the standard cost shall be properly adjusted. If there is a significant difference, the cost shall be allocated to the cost targets based on the original cost allocation ratio. The installation, revision, usage, and the difference treatment of standard cost system shall be set in writing.
The system operator may use activity-based cost system or other reasonable cost pooling and allocation system.

Cost allocation shall refer to the allocation of the cost to relevant cost targets.
The cost target shall refer to the cost of activity or event which shall be individually calculated.
The cost allocation shall be based on the causal relationship and the benefit level between the cost and cost target, and may be adjusted after the consideration of importance.

The system operator shall clearly set the division basis of direct cost and indirect cost, and divide the cost event based on this.

The direct cost shall refer to the cost which can be directly identified with the cost target, and there is obvious causal relationship between the cost and cost target, and the benefit level and the number of used resources could be clearly evaluated.

The indirect cost shall refer to the cost which cannot be directly identified with the cost target; they shall be pooled or allocated to the cost pool with homogeneity by their very nature, then be allocated to the cost target on a proper basis.
The cost pool in the previous paragraph shall refer to the joint account which individual cost events are pooled in, such as transmission network components cost, supporting function cost, or general management function cost, etc.
The cost pooled in the same cost pool shall be with homogeneity, the alleged homogeneity shall refer to the same or similar causal relationships or benefit levels between the cost and cost target.

The allocation of indirect cost shall consider the following bases:
1. The evaluation based on the inputted（activity）volume.
2. The evaluation based on the outputted volume.
If the inputted（activity）or outputted volume could not be physically evaluated, or the specific causal relationship or benefit level cannot be evaluated, the following reasonable alternative allocation bases shall be used:
1. The basis related to the materials.
2. The basis related to the human labors.
3. The basis related to the plant or equipment.
4. Other cost may use the business income and production amount or other similar bases.
The cost in paragraph 1 shall be allocated to all benefit business events, such as the subscriber’s subscription, lease-circuit business, lease-channel business, advertisements, etc.

When the indirect cost pools of service departments mutually provide service for each other, the cost allocation shall choose one of the following methods:
1. Cross-allocation method: the costs of service department shall be allocated to all departments, including the operation departments and service departments, it served based on the ratio of service which it had provided.
2. Step-allocation method: the costs of service department shall be allocated to all operation departments and service departments it served. However, when the cost of a certain service department has been fully allocated, that service department will no longer accept the costs directly or indirectly allocated from the succeeding service departments. The allocation order shall begin from the service department which provided most services or had the greater cost amount, and then allocates the rest step by step.
3. Direct allocation method: the costs of service departments shall be directly allocated to each operation department, the costs of each service department shall not be mutually allocated.
The service department in the previous paragraph shall refer to the departments that serve other departments, and have no direct connection to the labor or production and sale of the products; the operation departments shall refer to the departments directly engaged in the labor or production and sale of the products.

When the indirect cost allocation rate is used, the allocation standard shall be decided by the estimated volume of the cost and allocation bases and shall be set in writing. This standard shall be reviewed at least once a year and revised based on the actual needs.
When there is a significant difference between the actual indirect cost and allocated indirect cost, the difference shall be allocated to all cost targets based on the original allocation ratio.