Steel & Rolling Mill

Calculated By-Product Cost under "Cost" tab -> "By-Products" in Project tab.

3 - Labor spent on Project Work Orders are expenses that have an increasing effect on the project cost.

To learn how to define the effort spent on executing a project work order, please see: Determining the effort spent on a project work order .


Calculation :

Based on your Organizational Unit selection, the system takes the Labor Cost Definition made for the selected " Labor Hour Type " and multiplies this labor cost by the defined " Actual Labor Time ".

"Cost" under tab Calculated Labor Cost -> Project tab "Services - Services".


4 - Labor spent for activities performed for the project are expenses that have an increasing effect on the project cost.

To do this, this overall project cost is divided by the sum of "Planned Quantities" of all products defined as Project Output Products .

Please refer to Example - 1 to learn how these planned quantities are calculated.

Use of Cost Factor in Unit Cost Calculation

When defining Project Output Products , if you pass Cost Factor other than "1" to adjust the quantities to be included in the unit cost calculation, the Planned Quantities are recalculated according to the ratio between the cost factors, then summarized, and finally the overall project cost is divided by this total.

Please refer to Example – 2 to learn how these planned quantities are recalculated based on cost drivers.

Calculating Total Cost

For each product, the calculated Unit Cost is multiplied by the Actual Quantity defined under the "Inputs - Outputs" tab of the relevant Project Work Order to calculate the total cost of that product.
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