The variable costs (also called 'depreciation costs') entered for this equipment in the Equipment file are automatically copied to this field. The depreciation type ('By time unit', 'By processing quantity', or 'No depreciation') retrieved from the Equipment file is shown to the right of the variable costs.

You can change these costs on the current equipment line.

The variable costs are eventually multiplied by the number of hours the equipment was used, or by the number of pieces produced with the equipment (depending on the depreciation method). The number of hours or pieces is retrieved from the time registration records relating to the operation in which the equipment was used. This information is used in the actual costing phase to calculate the total variable costs of the equipment. The depreciation sum will also be saved in the Equipment file, to allow you to track the sums already depreciated on each piece of equipment.

This is the sum of the fixed costs process run, i.e. the fixed costs attaching to the use of the equipment. This field is automatically populated with the fixed costs defined for this equipment on the Equipment form or in the default calculation of the product on the Equipment calculation form.

You can change these costs on the current equipment line.

Example

If a saw needs to be sharpened after each process run, and the sharpening costs are $ 50, the fixed costs will be $ 50.

Tip: If you purchase the equipment to order, you can fill in the estimated purchase costs in this field.These costs will be used for preliminary costing purposes.