Cost Calculation Principles
Each fixed expense is associated with an amount and a date.
Each periodic expense is associated with an initial amount, a start date, and the amount and periodicity of timespots.
For more details on modeling of costs, see Creating a fixed expense and Modifying a periodic expense.The cost of the object can be calculated in the absolute, or in the context of an initiative of a portfolio. In the case of an initiative, sums are calculated between begin date and end date of the portfolio.
We assume for example that retirement of an application starts in July with a decreasing periodic cost. The periodic cost is 500€ and the decreasing cost -100€.
|
Begin date
|
End date
|
Period cost
|
Total cost obtained
|
|---|---|---|---|
|
7/1/2012
|
7/30/2012
|
500
|
500
|
|
7/1/2012
|
8/1/2012
|
400
|
900
|
|
7/1/2012
|
9/1/2012
|
300
|
1200
|
|
7/1/2012
|
10/1/2012
|
200
|
1400
|
|
7/1/2012
|
11/1/2012
|
100
|
1500
|
|
7/1/2012
|
12/1/2012
|
0
|
1500
|
The cost calculation formula proposed as standard in HOPEX is based on fixed and variable cost characteristics.