Cost bases refer to the bases of raw costs used for applying burden costs. You assign cost bases to burden structures, and then specify the types of raw costs that are included in the cost base along with the types of burden costs that are applied to the cost base.

You can also use cost bases as groupings of expenditure types for use in billing extension calculations. These cost bases are not used for burdening, and are defined with a cost base type other than Burden Cost. When you assign these cost bases with a type other than Burden Cost to a burden structure, you can specify expenditure types for the cost base, but you cannot specify burden cost codes for the cost base since the cost base is not used for burdening.

Cost base types refer to the use of cost bases. Oracle Projects predefines the cost base types Burden Cost and Other. Cost bases with the type Burden Cost are used in burden calculations. Cost bases with the a type other than Burden Cost are not included in burden calculations; these cost bases are used for grouping expenditure types for different purposes, such as for billing extension calculations.

To define cost bases and cost base types:

1. In the Cost Bases window, enter a unique name for the cost base.

   In the Report Order field, specify the order in which this cost base should appear for reporting purposes.

   In the Type field, specify the type of this cost base.

   Enter Effective Dates for the cost base.

   Enter a description of the cost base.

2. If you want to define a cost base type, choose Cost Base Type to display the Cost Base Type Lookups window. Enter the following information for the cost base:

   • Code

   • Meaning

   • Description

   • Tag Value (optional -- tag value is not used by Oracle Projects)

   • Effective dates

     Check the Enabled check box to enable the cost base.

3. Save your work.

Fremont Corporation Cost Bases

All of the cost bases that Fremont Corporation defines have the type Burden Cost, since they are used to group types of raw costs that are directly related to calculating burdened costs. Fremont does not define any additional cost base types.

Fremont defines the cost bases shown in the following table: