ABSTRACT
Training costs are defined as the total monetary investment made by an organisation as a result of the training function. They are the sum of all increases in expenditure and all decreases in income which stem from the decisions which management have taken about the training activity. Internal training costs are more difficult to assess than external training costs. The problem is simplest when the training is done at a training centre and only by full-time instructors. The costs will be reduced if the trainees make a contribution to output. If managers and other staff are involved part-time as instructors then their employment costs must be suitably apportioned. Where training is being done at or on-the-job, the trainee is not only using resources but may be causing a loss of profit by preventing those resources from being used effectively in normal production. Each organisation must decide for itself the value of collecting any but the most obvious costs of training.
