Burdens
A burden is a resource that has costs associated with it. In Production Management, burden refers to production costs plus the cost of components, such as the cost of labor, utilities, and machine setup.
Burden costs can be associated with producing finished goods. Burden costs are user-defined and can include labor, utilities, machine, and equipment costs.
In Inventory Control, you must define burden costs for each production facility. Burdens must be set up before they can be applied to specific finished good bills of material.
A burden code is used to identify a specific kind of burden, such as labor or utilities. A burden type determines how the cost for the burden is calculated.
These burden types are available.
| Burden type | Total burden cost calculation |
|---|---|
| Flat amount | The flat amount that is specified for the burden. |
| Amount per finished good | The quantity of the finished good multiplied by the amount for each finished good that is specified for the burden. |
| Percentage of finished good component inventory cost | The percentage of finished good inventory cost, which is the total of all normal and packaging components. |
| Amount per burden | The unit cost multiplied by the quantity and multiplier. For example, rate * hours * number of employees. |