ABSTRACT
When we say costs, we mean fully loaded costs-all of them. Fully loaded cost means that the cost profile goes beyond the direct costs and includes all indirect costs. This chapter explores the steps in accumulating and tabulating costs, outlining the specific costs that should be captured. In principle, to account for fully loaded costs when evaluating a specific training program, we must include every cost incurred to acquire and deliver the program. As with needs assessment costs, design and development costs are usually prorated, perhaps using the same time frame. In lieu of development costs, many organizations purchase programs to use directly or in a modified format. These acquisition costs should be prorated using the same rationale above; one to two years should be sufficient. In practice, many programs have both acquisition costs and development costs. If we leave any doubts about the inclusion of fully loaded costs, precious time will be diverted to discussing the cost issue.
