What formula is used to calculate total cost?

Material Cost of an assembly is always the rollup of the total costs of its children, including the quantity.

For example, if the total cost of a child item is $10, and there are 5 of these in the structure or assembly, the material cost of that assembly is $50.

• Total Cost of a leaf item = Material + Overhead (although Overhead will always be 0)

• Total Cost of an assembly = Rolled up Total Costs from the children + Overhead