In RedTeam, Cost Pools allow you to configure grouped costs, such as vehicles, facilities, tools, computers, etc. in order to better manage your accounting process. This is particularly useful when measuring and allocating funds for the use of equipment. By utilizing Cost Pools when creating new Equipment items, you designate a category for that item to be grouped and included in for cost accounting. The Equipment item will then automatically use the Cost Pool rate for accounting and measuring purposes.
Example: You want to create a Cost Pool for the use of a backhoe. The individual costs are $950 to rent the backhoe for one week, $200 for gas, and $20 an hour to hire an operator. So the total cost to use a backhoe is $1,950/week, or $390/day. The allocation must be based on the cost driver, in this case number of work days spent using the equipment. You can set up the Item with an Allocation Method of Equipment Assignment Duration, with a rate of $390/day to be calculated for the days assigned to the Employee.
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