Additional cost calculation

The additional costs calculation depends on the selected cost type.

The cost type describes how incurred costs are distributed among the project - among quantity, as annual costs or one-time costs.

The allocation type enables you to distribute the total costs for the additional costs across the production period. The cost type and the allocation type affect each other.

The additional costs are calculated as follows:

"unit costs" cost type "one-time costs" cost type "annual costs" cost type
General

For the cost type "unit costs", the costs are incurred on 01/01 of every year per each commenced amount of parts. The allocation costs remain the same every year and results in the total costs.

For the cost type "one-time costs", all costs are incurred in the first year. The allocation costs are incurred in full on 01/01 of the first production year.

For the cost type "annual costs", the costs are incurred on 01/01 of every year. The allocation costs are equal to the costs every year.
Example

2015: 10,000.00 Pieces - 2016: 10,000.00 Pieces - 2017: 40,000.00 Pieces

With active interest on capital: interest rate on capital: 4 % interest period: 3 years (determining the interest return in the system settings: Normal, Interest allocation according to interest flow)

Name: Inspector

Cost per element: 200 €

Number of additional costs: 2 Inspectors

Per number of parts: 5,000

Name: Injection molding tool

Cost per element: 250,000.00 €

Number of additional costs: 1 Machine

Name: Product liability insurance

Cost per element: 200.00 €

Number of additional costs: 1 Insurance
Independent of allocation type

Direct Costs: allocation amount / annual quantity.

Direct Interest Costs: interest costs per year / annual quantity.

Allocation Costs: total project costs for all production years / number of production years.

Total Cost Allocation [€]: allocation costs + interest.

Total Direct Costs [€]: direct costs + direct interest costs.

Number of elements:

Annual quantity / per number of parts * number of elements

Number of Elements [piece]: the number in detail view identical to the number in the annual preview

 Number of Elements [piece]: the number in detail view identical to the number in the annual preview

Costs [€]:

Total additional costs for all production years / total production quantity for all production years * annual quantity

Costs [€]:

Total additional costs equal the total additional costs for all production years.

Costs [€]:

Total additional costs for all production years / number of production years.

Allocation Costs [€]: total additional costs for all production years / number of production years.

Allocation Costs [€]: allocation costs equal the total additional costs for all production years.

Allocation amount [€]:

Total additional costs for all production years / number of production years.

Example:

Inspector

Number of Elements: 2015 with 4 Inspectors (∑ 24 Inspectors)

Costs [€]: 2015 with 800 € (∑ 4,800 €)

Allocation costs per calculation year: 1,600.00 € (∑ 4,800 €)

Interest: 2015: 64 € (∑ 576 €)

Total Cost Allocation [€]: 2015: 1,664.00 € (∑ 5,376 €)

Example:

Injection molding tool

Number of Elements: 2015 with 1 Machine (∑ 1 Machine)

Costs [€]: 2015: 250,000.00 € (∑ 250,000 €)

Allocation Costs: 2015: 250,000.00 € (∑ 250,000 €)

Interest: 2015: 10,000 € (∑10,000 €)

Total Cost Allocation [€]: 2015: 260,000 € (∑ 280,000 €)

Example:

Product liability insurance

Number of Elements: 2015: 1 Insurance (∑ 3 times Insurance)

Insurance per calculation year: 200 € (∑ 600 €)

Allocation costs per calculation year: 200 € (∑ 600 €)

Interest: 2015: 8 € (∑ 72 €)

Allocation Costs [€]: 2015: 208 € (∑ 672 €)
No allocation

Direct costs [€/piece]:

No costs are allocated; the incurred costs are not added to the calculation object.
Allocation to total quantity

Direct Costs [€/piece]: total additional costs for all production years / total production quantity for all years.

Example:

Inspector

Direct Costs [€/piece]: 0.08 €

Direct Interest Costs [€/piece]: 0.01 €

Total Direct Costs [€/piece]: 0.09 €

Example:

Injection molding tool

Direct Costs [€/piece]: 4.17 €

Direct Interest Costs [€/piece]: 0.05 €

Total Direct Costs [€/piece]: 4.67 €

Example:

Product liability insurance

Direct Costs [€/piece]: 0.01 €

Direct Interest Costs [€/piece]: 0 €

Total Direct Costs [€/piece]: 0.01 €
Allocation to annual quantity

Direct costs [€/piece]:

Allocation amount / annual quantity

Direct costs [€/piece]:

Allocation amount / annual quantity

Direct costs [€/piece]:

Allocation amount / annual quantity

Example:

Inspector

Direct costs [€/piece]:

2015: 0.16 €

2016: 0.16 €

2017: 0.04 €

Direct Interest Costs [€/piece]:

2015: 0.01 €

2016: 0.01 €

2017: 0.01 €

Total Direct Costs [€/piece]:

2015: 0.17 €

2016: 0.17 €

2017: 0.05 €

Example:

Injection molding tool

Direct costs [€/piece]:

2015: 8.33 €

2016: 8.33 €

2017: 2.08 €

Direct Interest Costs [€/piece]:

2015: 1 €

2016: 1 €

2017: 0.25 €

Total Direct Costs [€/piece]:

2015: 9.33 €

2016: 9.33 €

2017: 2.33 €

Example:

Product liability insurance

Direct costs [€/piece]:

2015: 0,02 €

2016: 0.02 €

2017: 0.01 €

Direct Interest Costs [€/piece]:

2015: 0 €

2016: 0 €

2017: 0 €

Total Direct Costs [€/piece]:

2015: 0,02 €

2016: 0.02 €

2017: 0.01 €
Allocation to the first x parts

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.

End of distribution: "First x parts" - production quantity (1st year/2nd year/n-th year) Distribution ends in the year in which the result is ≤ zero.

Distribution among years: The costs are equally distributed among the production years until the calculated end year. A proportion of the costs is calculated in the end year if the remaining quantity is less than zero. The production quantity in the end year is 100 % and the remaining parts of "First x parts" are X.

Direct Costs [€/piece]: allocation costs / production quantity

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.
Example

Injection molding tool - one-time costs

To the first 25,000 parts

25,000 pcs - 10,000 pcs = 15,000 pcs

15,000 pcs - 10,000 pcs = 5,000 pcs

5,000 pcs - 40,000 pcs = -35,000 pcs ≤ 0 end in 3rd project year

25,000 pcs = 100%

2015: 10,000 pcs = x1 40% / E= 100,000 €/10,000 pcs. = 10 €

2016: 10,000 pcs = x2 40% / E= 100,000 €/10,000 pcs = 10 €

2017: 40,000 pcs = x3 20% / E= 50,000 €/40,000 pcs = 1.25 €
Allocation after x parts

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.

Begin of distribution: "First x parts" - production quantity (1st year/2nd year/n-th year) Distribution begins in the year in which the result is ≤ zero.

Distribution among years: The costs are equally distributed among the production years beginning with the calculated start year. A proportion of the costs is calculated in the start year if the remaining quantity is less than zero. The production quantity in the start year is 100 % and the remaining parts for "After x parts" are X.

Direct Costs [€/piece]: allocation costs / production quantity

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.
Example

Injection molding tool - one-time costs

After 25,000 parts

25,000 pcs - 10,000 pcs = 15,000 pcs

15,000 pcs - 10,000 pcs = 5,000 pcs

5,000 pcs - 40,000 pcs = -35,000 pcs ≤ 0 begin in 3rd project year

250,000.00 €/40,000 pcs = 6.25 [pcs/€] (100% of the costs are distributed among the third production year 2017 on all 40,000 pieces)

Detailed example with an additional production year 2018 with 20,000 pieces:

35,000 pcs (2017) + 20,000 pcs (2018) --> 250,000.00 €/55,000 pcs = 4.54 €

2017 40,000 pcs = 100 % and 35,000 pcs = x; x = 87.50 %

2017: 4.54 € * 87.50 € = 3.98 € and 2018: 4.54 € * 100.00 € = 4.54 €

Note

If distribution starts in the final calculation year, 100% of the costs are distributed among the final calculation year. If this is not the case, then the costs will be distributed as a percentage in the starting calculation year.

Allocation to the first x years

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.

Direct Costs [€/piece]: total production costs for all production years / total production quantity for all production years until x.

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.
Example

Injection molding tool - one-time costs

To the first 3 years

Direct costs [€/piece]:

2015: 4.17 €

2016: 4.17 €

2017: 4.17 €

Direct Interest Costs [€/piece]:

2015: 0.17 €

2016: 0.33 €

2017: 0.63 €

Total Direct Costs [€/piece]:

2015: 4.33 €

2016: 4.50 €

2017: 4.79 €
Allocation after x years

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.

Direct Costs [€/piece]: total production costs for all production years / total production quantity for all production years as of x.

Direct costs [€/piece]:

The calculation of the allocation to direct costs is not defined.
Example

Injection molding tool - one-time costs

After the first 2 years

Direct costs [€/piece]:

2015: 0 €

2016: 0 €

2017: 6.25 €

Direct Interest Costs [€/piece]:

2015: 0 €

2016: 0 €

2017: 0.75 €

Total Direct Costs [€/piece]:

2015: 0 €

2016: 0 €

2017: 7 €