Examples for Additive and Precedence Burden Structures

A burden structure can be additive or precedence based. If you have multiple burden cost codes, an additive burden structure applies each burden cost code to the raw cost in the appropriate cost base.

A precedence burden structure is cumulative and applies each cost code to the running total of the raw cost, burdened with all previous cost codes. You assign the multiplier on the burden schedule that Oracle Fusion Project Costing uses to perform the cost buildup for each detailed transaction.

Additive Burden Structure

Create an additive burden structure to apply each burden cost code assigned to a cost base using the same precedence when calculating burden costs. The following table describes an example of calculating burdened cost using an additive burden structure.

Cost Code	Precedence	Multiplier	Formula	Amount (USD)
Raw Cost	0	0	0	100.00
Overhead	1	0.50	0.50 * 100.00	50.00
Fringe Benefits	1	0.30	0.30 * 100.00	30.00
General and Administrative	1	0.20	0.20 * 100.00	20.00
Burdened Cost	0	0	0	200.00

Precedence Burden Structure

The following table lists an example which explains how each burden cost code assigned to a cost base is applied to raw costs.

Cost Code	Precedence	Multiplier	Formula	Amount (USD)
Raw Cost	0	0	0	100.00
Overhead	10	0.50	0.50 * 100.00	50.00
Fringe Benefits	20	0.30	0.30 * 150.00	45.00
General and Administrative	30	0.20	0.20 * 195.00	39.00
Burdened Cost	0	0	0	234.00