Cost bases refer to the bases of raw costs used for applying burden costs. You assign cost bases to burden structures, and then specify the types of raw costs that are included in the cost base along with the types of burden costs that are applied to the cost base.

You can also use cost bases as groupings of expenditure types for use in billing extension calculations. These cost bases are not used for burdening, and are defined with a cost base type other than Burden Cost. When you assign these cost bases with a type other than Burden Cost to a burden structure, you can specify expenditure types for the cost base, but you cannot specify burden cost codes for the cost base since the cost base is not used for burdening.

Cost base types refer to the use of cost bases. Oracle Projects predefines the cost base types Burden Cost and Other. Cost bases with the type Burden Cost are used in burden calculations. Cost bases with the a type other than Burden Cost are not included in burden calculations; these cost bases are used for grouping expenditure types for different purposes, such as for billing extension calculations.

You define a cost base for a group of expenditure types or raw costs and assign it a cost base type that determines how the cost base is used. For example, if you assign a cost base type of burden to a cost base for labor costs, Oracle Projects burdens each labor raw cost with the additional specified cost to calculate the total burdened cost of the labor cost transaction. A cost base type of Other uses the cost base to group expenditure types for billing extension calculations.

Examples of cost base are Department Cost
Labor, Labor - Faculty, Labor - Staff, Labour Costing, Total Costs, Material, Expenses, Project Manufacturing, Work Orders etc