Default Basis Types (Oracle Cost Management)


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Default Basis Types

This basis type is used to determine how the overhead cost is earned and how it is applied to product costs.

Activity Used to apply activity costs to items. The activity basis type can only be used with the material overhead sub-element. The item cost is calculated by multiplying the activity cost by the ratio of the number of times the activity occurs divided into the cumulative quantity of the item associated with those occurrences.

Item default Used to earn and apply costs for all sub-elements. For material and material overhead sub-elements, you charge a fixed amount per item. For resource, outside processing, and overhead sub-elements, you charge a fixed amount per item moved in an operation.

Lot Used to earn and apply costs for all sub-elements. The item cost is calculated the same as an Item basis cost except that the unit cost is divided by the cost type standard lot size to derive the cost per item.

Resource units Used for material overhead and overhead sub-elements. For the overhead sub-element, you earn and apply a fixed amount of overhead for each resource unit you earn on the operation. For the material overhead sub-element, this basis type may be used to apply overhead to an item's product cost. However, these costs are not earned in work in process.

Resource value Used for material overhead and overhead sub-elements. For the overhead sub-element, you earn and apply a percentage of the resource value you earn on the operation as overhead. For the material overhead sub-element, this basis type may be used to apply overhead to an item's product cost. However, these costs are not earned in work in process.

Total value Used to earn and apply costs with the material overhead sub-element. This cost is applied to product cost and earned as a percentage of the item's total cost less any this level material overhead. For purchased items, the cost is earned when the item is received. For assemblies, the cost is earned when the assembly is completed from a job or schedule.

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Activity	Used to apply activity costs to items. The activity basis type can only be used with the material overhead sub-element. The item cost is calculated by multiplying the activity cost by the ratio of the number of times the activity occurs divided into the cumulative quantity of the item associated with those occurrences.
Item default	Used to earn and apply costs for all sub-elements. For material and material overhead sub-elements, you charge a fixed amount per item. For resource, outside processing, and overhead sub-elements, you charge a fixed amount per item moved in an operation.
Lot	Used to earn and apply costs for all sub-elements. The item cost is calculated the same as an Item basis cost except that the unit cost is divided by the cost type standard lot size to derive the cost per item.
Resource units	Used for material overhead and overhead sub-elements. For the overhead sub-element, you earn and apply a fixed amount of overhead for each resource unit you earn on the operation. For the material overhead sub-element, this basis type may be used to apply overhead to an item's product cost. However, these costs are not earned in work in process.
Resource value	Used for material overhead and overhead sub-elements. For the overhead sub-element, you earn and apply a percentage of the resource value you earn on the operation as overhead. For the material overhead sub-element, this basis type may be used to apply overhead to an item's product cost. However, these costs are not earned in work in process.
Total value	Used to earn and apply costs with the material overhead sub-element. This cost is applied to product cost and earned as a percentage of the item's total cost less any this level material overhead. For purchased items, the cost is earned when the item is received. For assemblies, the cost is earned when the assembly is completed from a job or schedule.