Four Steps to Calculating Costs
To determine the costs of a training project, a trainer needs to calculate:
all personnel costs
all materials costs
all delivery costs
Each of these steps has substeps. Although numerous, they are relatively simple.
Step 1: Personnel Costs
Personnel costs are figured by determining wages and salaries for the personnel involved. Wages and salaries can be calculated in two ways:
Direct labor costs
Simply salary or wages divided by the number of days or hours worked. The U.S. average for number of days worked is 230.
Full labor costs
Salary or wages plus fringe benefits (vacation and sick leave, holidays, health and life insurance, and pensions) plus overhead (facilities costs, support staff salaries, ...