DAVION

SYSTEMS

Direct and Defined Costs

 

Mandrel recognizes two types of cost element within a cost item: direct and defined.

 

Direct Costs

Direct costs are specified directly in monetary terms, e.g subcontract X will be $10,000.

 

Defined Costs

Defined costs are costs that are specified in non-monetary terms, such as a number of labor hours or a materials quantity. Defined costs must have a pre-defined unit price to convert them into monetary values. For example, a defined cost could be 80 hours of labor at $100 per hour, or 20 tons at $150 per ton, or 12 screwdrivers at $5.83 each.

Mandrel provides extensive facilities for setting up and maintaining price lists.