Cost Distribution

The goal of cost distribution analysis is to determine the cost data for service provisioning.

Cost distribution describes allocation of all indirect costs to each part of the production chain. This detailed information on costs allocation can then be used to determine the unit cost of each "output" from the production chain. Based on the unit cost, final unit price can then be set and profit predicted.

For the purpose of cost distribution analysis, each object (service, product, product type, project, organization unit, cost center, business partner) in the production chain is represented by a proxy object called Distribution Element. Distribution elements are linked together, thus forming a Distribution Network. The information on each particular link between two distribution elements in the distribution network is contained in an object referred to as Distribution.

A distribution network is then assigned to a plan. It is possible to model alternative scenarios of indirect costs distribution for one plan by assigning different distribution networks to it and recalculating the results.

For each distribution element - in a given plan and a given plan period - it is possible to determine its consumption cost, production cost, unit cost, capacity, unit price. This information is represented by an object called Distribution Total.

Distribution Detail provides detailed information on the indirect costs incurred by all involved distribution elements.