Appendix G
Example Cost Driver Questionnaire

Contents

• A Questionnaire on major factors impacting logging costs;

• A list of major cost drivers; and,

• Definitions for the cost groupings used in the questionnaire.

General Instructions

Mike Alexander
KPMG
9th floor, 777 Dunsmuir Street
PO Box 10426, Pacific Centre
Vancouver, B.C. V7Y 1K3

Required date

Questions

Completing the questionnaire

For each of these cost categories:

1) Review the list of delivered wood cost drivers and cost driver definitions.

2) Identify those cost drivers that explain the 1992 - 1996 cost increases for each cost category.

3) Enter the cost driver or drivers which are appropriate for your operation in the table provided for each cost category.

4) For each cost driver identified, enter a percentage in the table that reflects your best estimate of the percentage of the 1992 - 1996 cost increase attributable to each cost driver (the percentages must add up to 100% for each cost category).

Confidentiality:

KPMG will treat this data in strictest confidence. KPMG will collect and manage all such data and will accord it with the same standard of care accorded data collected during auditing and consulting work. The resulting report will not directly or indirectly disclose any company-specific data. Ministry of Forests inspection of, not access to, company-specific data will only be permitted through mutual agreement of the Ministry and CEO of the company concerned.In order to protect the confidentiality of this questionnaire we request that you take all necessary security precautions including at a minimum:

• Designating one person in your organization responsible for maintaining the confidentiality of this information,

• Keeping the questionnaire and any related working papers in a secure area, and

• Ensuring that the information is not faxed to KPMG.

Cost Category-Tree to truck

Instructions:

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.

Cost Category-Hauling

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.

Cost Category-Dump, sort, boom and rehaul

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.

Cost Category-Forest regeneration

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.

Cost Category-Road expenses

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.

Cost Category-Forest management and engineering

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.

Cost Category-Other overhead

For your operation, please enter the cost drivers responsible for the cost increases in this category below in the Cost Driver column. Use the code from the list provided or specify any other cost driver not included on the list. Also enter the percentage estimate which you believe best represents the part of the cost increase (1992 - 1996) attributable to each cost driver selected in the % Responsible column. Please note that the % Responsible column must add up to 100%.