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About basic activity costing |
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The total cost of an activity is calculated by taking two costs into account: resource (cost of resources involved in the activity) and volume (additional costs incurred when the activity occurs). This provides the following equation:
Cost of resources carrying out the activity + Custom volume cost = Total Activity Cost
If a costed resource is attached to an activity, TIBCO Nimbus® will calculate the cost of the activity using the costed rate of the resource, the percentage allocation of the resource and the specified duration of the activity.
Resource Cost = rate x duration x percentage
This would result in a resource cost of £40 if the resource costs £20 per hour (rate), the activity takes 2 hours to complete (duration) and the resource is allocated to the activity 100% (percentage).
Multiple resources can be allocated to an activity and these will also be costed.
Resource Cost = (rate 1 x percentage 1 + rate 2 x percentage 2 +...+ rate n x percentage n) x duration
TIBCO Nimbus® assumes that all resources work in parallel on an activity and not consecutively. Resources can be marked as 'not costed' on a particular activity and therefore will not be included in the costing.
Defining activity costing values
Updating costs from child diagrams
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