What are the Cost Methods in the BFA worksheet?
There are three costing methods that govern the calculations used in the Spitfire Forecast:
- Cost Plus (CP) is a very straightforward projection. If budgeted, the Working FAC will be the greater of 1) EAC or 2) Actual-to-date. Note: NO Gain/Loss is calculated for CP rows.
- Fixed Price (FP) is the norm for most Project costs. It may include Cost Code Units of Production as well as Account Category units. Together they are used to generate production and productivity values. Gain/Loss calculations are based on EAC versus computed FAC values.
- Unit Price (UP) is handled similarly to FP up to 100% complete. Thereafter, the Gain/Loss calculations are based on the spread between the EAC Production Unit Rate and the FAC Production Unit Rate multiplied by the total production units at completion.
KBA-01449; Last updated: October 11, 2016 at 13:12 pm;
Keywords: Budget costing methods