GFEBS L230E Cost Management
Process Overview
Direct Cost Ans- 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 Ans- 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 Ans- The value of goods or services received because of an obligation of funds by the
organization performing the work
Unfunded Cost Ans- A cost that is financed by another organization's or activity's appropriations.
Variable cost Ans- A cost that changes with a change in output
fixed cost Ans- A cost that remains the same regardless of a change in output
sunk cost Ans- A cost incurred in the past that will not be affected by any present or future decision
incremental cost Ans- The increase or decrease in cost that would result from a decision to increase or
decrease output levels
avoidable cost Ans- A cost incurred on an object that will no longer be incurred due to a decision to
change the output.
unavoidable cost Ans- A cost incurred on an object that will be incurred regardless of the decision to
change
, Activity Type Ans- 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 Ans- 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 Ans- 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
WBS Ans- A WBS element is an activity within the Project used to plan and update cost data. Some
examples of WBS Elements are: tasks, partial tasks, and work packages
Order Ans- Orders are cost objects used to plan, collect, monitor, and settle the costs of jobs and tasks
Internal Order Ans- An object used to track costs and revenues (in some cases) associated with internal
jobs and tasks. Internal Orders are often used to monitor the costs related to shorter-term projects or
those individual services offered by an organization.
Work Order Ans- A Work Order is a specific task performed on a demand or preventative basis. Work
Orders reside in the Plant Maintenance Module in GFEBS. Work Orders are task-driven and specific in
nature.
Business Process Ans- is a cost object used to capture costs of cross-functional Cost Center activities.
Business Processes are the "work" being performed by the Cost Center and Activity Types.
Statistical Key Figure Ans- is a unit of measure, including quantity or time, by which costs are reported.
For example, the number of people (headcount) served at a meal in a dining facility.
Cost Management Process Ans- four sub-processes that interact and affect one another.
Process Overview
Direct Cost Ans- 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 Ans- 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 Ans- The value of goods or services received because of an obligation of funds by the
organization performing the work
Unfunded Cost Ans- A cost that is financed by another organization's or activity's appropriations.
Variable cost Ans- A cost that changes with a change in output
fixed cost Ans- A cost that remains the same regardless of a change in output
sunk cost Ans- A cost incurred in the past that will not be affected by any present or future decision
incremental cost Ans- The increase or decrease in cost that would result from a decision to increase or
decrease output levels
avoidable cost Ans- A cost incurred on an object that will no longer be incurred due to a decision to
change the output.
unavoidable cost Ans- A cost incurred on an object that will be incurred regardless of the decision to
change
, Activity Type Ans- 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 Ans- 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 Ans- 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
WBS Ans- A WBS element is an activity within the Project used to plan and update cost data. Some
examples of WBS Elements are: tasks, partial tasks, and work packages
Order Ans- Orders are cost objects used to plan, collect, monitor, and settle the costs of jobs and tasks
Internal Order Ans- An object used to track costs and revenues (in some cases) associated with internal
jobs and tasks. Internal Orders are often used to monitor the costs related to shorter-term projects or
those individual services offered by an organization.
Work Order Ans- A Work Order is a specific task performed on a demand or preventative basis. Work
Orders reside in the Plant Maintenance Module in GFEBS. Work Orders are task-driven and specific in
nature.
Business Process Ans- is a cost object used to capture costs of cross-functional Cost Center activities.
Business Processes are the "work" being performed by the Cost Center and Activity Types.
Statistical Key Figure Ans- is a unit of measure, including quantity or time, by which costs are reported.
For example, the number of people (headcount) served at a meal in a dining facility.
Cost Management Process Ans- four sub-processes that interact and affect one another.
