Which of the following is an example of a revenue-producing cost?

• A. Taking blood samples for health screening
• B. Taking blood samples for an investigator's study
• C. Maintaining records for USDA
• D. Cleaning the feed storage room

Answer: (B)

Revenue-producing costs are those tied to work funded by an external sponsor, where the procedure or service can be billed to that sponsor as part of a contract. Taking blood samples for an investigator’s study fits this, because it is performed under a funded research protocol and the facility can charge the sponsor for the procedure, time, and materials involved. Other items described are tied to welfare, regulatory compliance, or routine facility operations rather than a specific billable study: health screening bloodwork supports animal health and welfare rather than generating revenue through a contract; maintaining records for USDA is regulatory compliance; cleaning the feed storage room is routine maintenance. So the blood sampling for the investigator’s study is the revenue-producing activity.