Use volume cost to calculate cost per period

Top  Previous  Next

Usually the total cost of activities and the volume is used to calculate the cost per period (day, week, etc) for a specific diagram. You can choose to use the volume cost of activities to calculate the diagram cost for a period instead.

 

Note: This method requires the Override Volume Cost to be defined and selected for a particular activity.

 

 


 

 

1.Right-click the activity and choose Costing and then Values.

 

2.Click the Calculated Information tab.

 

3.Select the Use overridden volume cost when calculating the diagram's cost per period check box.

 

4.Click OK.

 

 

Example

 

Activity 1 - Volume = 10 per day, Total Cost = £80

Activity 2 - Volume = 10 per day, Total Cost = £240

Activity 3 - Volume = 10 per day, Total Cost = £160

 

Diagram's Cost Per Day = (£80 x 10) + (£240 x 10) + (£160 x 10) = £4800

 

However, if we use the overridden volume cost of activity 2 as part of the diagram's cost per day calculation:

 

Activity 1 - Volume = 10 per day, Total Cost = £80

Activity 2 - Volume = 10 per day, Total Cost = £240 (Overridden Volume Cost = £5000)

Activity 3 - Volume = 10 per day, Total Cost = £160

 

Diagram's Cost Per Day = (£80 x 10) + £5000 + (£160 x 10) = £7400