Defining activity-specific standard costs

Use this cost to define a flat-rate standard cost that is assigned a value directly on the activity.

The only difference between a flat-rate standard cost and an activity-specific standard cost is that a cost amount is not included in the definition. The amount will be included on the activities that use the cost.

  1. Select Learning and Development > Set Up > Costs > Standard Costs.
  2. Select New > Create Standard Cost Based On Activity Specific Rate.
  3. Specify this information:
    Effective Date

    Specify the effective date.

    Cost Name

    Specify the name of the standard cost

    Description

    Specify the description of the standard cost. If you leave this field blank, the cost name defaults.

    Cost Type

    Select the cost type for the standard cost.

    Active

    Select this check box to make the standard cost active. Inactive standard costs are not displayed in lists.

    Currency

    Select the currency in which the cost is expressed.

    Include In Catalog Cost

    Select this check box if this cost is to be included in calculations for the cost that is displayed in the catalog.

    Note: The system calculates the catalog cost of an activity by totaling all the costs associated with the activity that have this check box selected.
    Duration Unit

    Select a duration unit or select another unit in the Other Unit field. If the duration unit matched that of the activity to which the cost is assigned, the system will multiply the cost you specify on the activity by the number of units specified for the activity. If the duration units do not match, the system assigns one unit to the cost on the activity and a warning flag displays for the cost. In either case, you can change the number of units and the rate on the activity.

    For example, if you define a daily pedagogical cost and attach it to an activity with a duration of four days, the system assigns four units to the cost. When you specify a rate on the activity (for example, 50 euros), the system multiplies the rate by four units, with a total of 200.00 euros. If the activity's duration is not expressed in days, the number of units assigned is one. In either case, you can change both the number of units and the rate per unit on the activity.

    Or Other Unit

    If you do not select a unit of measure, you can select either Hours or Per Person in this field. If you select Hours, the system assigns a number of units equal to the number of hours specified for the activity and compute the total hours times the rate you specify on the activity. If you select Per Person, the system assigns one unit to the cost on the activity. In either case, you can change the number of units and the rate per unit on the activity.

  4. Click Save.
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