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What is the definition of "Generated" cost and "Work Cost" values on the Work Plan Cost Analysis tab for Stop Gap Repair and Repair work activities? - Knowledgebase / BUILDER / Frequently Asked Questions - SMS Helpdesk

What is the definition of "Generated" cost and "Work Cost" values on the Work Plan Cost Analysis tab for Stop Gap Repair and Repair work activities?

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Question:

What is the definition of "Generated" cost and "Work Cost" values on the Work Plan Cost Analysis tab for Stop Gap Repair and Repair work activities?


Answer:

"Generated" is the estimated monetary benefit of a work activity.  Its calculated based on the extended service life resulting from the repair and the amortized value of the component.  So if you have a component that is expected to last 10 years and costs $10,000 to replace, and a repair at some point in its life is expected to result in an additional 2 years of service, the benefit or returned generated would be $10,000/10 (x 2 years) = $2,000.  The work cost, by comparison, is just the estimated cost of performing that work activity.



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