Glossary of Terms


General terms involved in an RCM model are provided for you here.  UCO specific definitions of each of these will be added as they are approved.

Revenue Center - A unit that generates tuition and/or fee revenue as a significant portion of our institution's budget.

Cost Center - A unit that generates operating expenses for other units.  Revenue generation is constrained.  Acts as a service to other units.

Blended Center - A cost center that generates moderate revenue.  A revenue center that requires significant subsidization. 

Revenue - Sources of income for the institution.

Expense - The cost of goods and services.

Driver - The basis for allocating revenues or expenses across the centers.

Cost Pool - Multiple cost centers aggregated into a group with the same cost driver for the purpose of reducing complexity in expensing the costs to the centers.