GFEBS L230E Cost Management Process Overview

Direct Cost - Answer- A cost such as labor, materials, or supplies that can be traced directly to producing a specific output of an organization, product, and service Indirect Cost - Answer- A cost that cannot be traced directly to a specific organization, product, and/or service output They often are allocated on a predetermined basis and generally are synonymous with overhead costs such as general and administrative expenses. Funded Cost - Answer- The value of goods or services received because of an obligation of funds by the organization performing the work Unfunded Cost - Answer- A cost that is financed by another organization's or activity's appropriations. Variable cost - Answer- A cost that changes with a change in output fixed cost - Answer- A cost that remains the same regardless of a change in output sunk cost - Answer- A cost incurred in the past that will not be affected by any present or future decision incremental cost - Answer- The increase or decrease in cost that would result from a decision to increase or decrease output levels avoidable cost - Answer- A cost incurred on an object that will no longer be incurred due to a decision to change the output. unavoidable cost - Answer- A cost incurred on an object that will be incurred regardless of the decision to change Activity Type - Answer- An Activity Type is the cost master data that represents a group of resources within a Cost Center. These resource groups have capacity and a unit of measure such as: labor hours, machine hours, square footage, etc. Activity Types are used to produce the products and services of the organization. Cost Center - Answer- A Cost Center is a responsibility center on which costs are incurred. It has an operational manager who is accountable for the resources consumed to produce the cost center's output. Project - Answer- A Project is an object used to plan, collect, monitor, and control costs for large scale time-based events in Project Systems, when extensive scheduling and resource management capabilities are required. Projects have definite start and end dates