Expense Types

Expense types classify indirect or operational costs into reusable categories. They help teams organize expenses consistently, report on expense patterns, and separate different kinds of non-material and non-labor cost.

Available Expense Types

Code	Type	Behavior
Standard Fixed	Type A	Quantity × fixed cost
Direct Fixed	Type D	Fixed cost per unit
Subcontract	Type S	Resolves through expense margin bucket
Material-type	Type M	Treated as material cost in pricing

Why Expense Types Matter

Expense types strengthen both estimating clarity and downstream cost analysis. By classifying each expense, you can:

• Report on specific expense categories across projects
• Apply appropriate margin treatment (subcontract vs. material-type)
• Maintain consistent cost structure across your organization

Best Practices

• Use consistent expense type assignments across similar costs
• Document what each expense type represents in your organization
• Review expense type usage periodically to ensure consistency

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Next: Handling Costs