Rate basis refers to the method or basis used to calculate the rate or price of a product or service. It is an important consideration in pricing and can have a significant impact on the profitability of a business.

There are various rate basis options that businesses can use, depending on the nature of the product or service being offered. Some common rate basis options include:

Fixed price: This rate basis involves charging a fixed price for a product or service, regardless of any variables such as quantity or duration. This is often used for products or services that are standardized and have a consistent cost structure.

Cost plus: This rate basis involves adding a markup or profit margin to the cost of the product or service. This is often used when the cost of a product or service is subject to fluctuations, such as with raw materials or labor costs.

Volume discounts: This rate basis involves offering lower prices for larger quantities of a product or service. This is often used to encourage bulk purchases and can be based on the total quantity of a product or service purchased over a given period of time.

Tiered pricing: This rate basis involves charging different prices for different levels or tiers of a product or service. This is often used to encourage customers to purchase higher-level products or services that offer more features or benefits.

The rate basis that a business chooses will depend on a variety of factors, including the nature of the product or service being offered, the cost structure of the business, and the target market.

Here under you can find the rate base codes that be used: