1. Process Activity Types
Labor hours, Machine hours, Square footage

2. Terminal Learning Objective
Action: Process Activity Types
Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum 80% accuracy learners must demonstrate proficiency with:
Communicate Activity Type Concepts 2

3. Activity Types and Rates
What are Activity Types and how are they used?
Cost Objects represent a group of resources within a cost center consumed in the production of products and services provided by an organization
Activity Type is a cost object that represents a group of resources within a Cost Center that is measurable in units such as: labor or machine hours, square footage, exercises completed or other quantitative unit.
Used to plan, allocate, and control costs for quantity-based allocations.
Used to reassign activity costs to cost objects
Each Cost Center in the GFEBS solution has zero, one, or many Activity Types assigned.
Activity Type Rates can either be set manually or calculated internally. 3

4. Activity Type Concepts
Plan, Allocate and Control Costs 1
Many
Cost
Center
Capacity and Unit of Measure
Consumed
Used to Produce
Products/
Services
Prices – Set prior to an organization coming onto GFEBS
or during cost planning
Product or Service X Price/Activity Type 4

5. Activity Type Concepts (Cont.)
Activity Type Example
Cost Center
Activity Type
People e.g. RMO
Manager & Analyst
Blended e.g. Motor
Pool
Mechanic & Vehicle 5

6. Activity Type Concepts (Cont.)
Activity Types are a new concept to the Army
They are considered cost drivers
Example: Labor cost, when personnel are working on more then one task and each task must be charged for the hours and rate performed.
Activity types will allow for calculating each rate and charging to appropriate organization and assigning (driving, allocating) cost to the designated cost object. 6

7. GFEBS Cost Objects v. Legacy Data Elements7

8. Activity Types & Allocation
Description
Value Base Allocation
Involves Allocating Actual Dollar Amounts
Quantity-Based Allocation
Involves Allocating a Quantity (e.g., hours)
Activity Types are the Cost Objects used to classify these different activities, and
therefore Activity Types are strictly used for Activity Allocation purposes. 8

9. Criteria for Establishing and Changing
One Activity should be created in the GFEBS solution for every different type of activity that is produced by one Cost Center in support of another Cost Center within the organization.
Example: Mechanics who repair heating and air conditioning units would have an Activity Type.
- Hourly rates can then be assigned to these Activity Types and used to allocate costs from sender Cost Center (in this example the Mechanic’s Cost Center) to receiver Cost Centers based on the amount of activity performed. 9

10. Criteria for Establishing and Changing (Cont.)
During Activity Allocation the quantity of hours will be multiplied by the Activity Type rate to determine the amount of cost to be allocated.
Activity Types are used to track standard rates for labor types, materials, overhead, and other measurable outputs.
Centralized versus Decentralized Element Control:
Activity Types standardized across installation establishment will be centralized.
Nonstandard Activity Types will be decentralized. 10

11. Activity Type Examples11

12. Conduct Practical Exercises12 12

13. T-Code: KL01 Conduct Practical Exercise 14.1
Walkthrough: Create Activity Type
T-Code: KL01
Conduct Practical Exercise 14.1
Use this procedure to create an Activity Type.
An Activity Type is a cost object that represents a group of resources within a Cost Center. These resource groups
have capacity and unit of measure such as: Labor hours, Machine hours, Square Footage, etc. Activity Types
are consumed and utilized to produce the products and services of the organization. Use this procedure to
improve the utility/accuracy of cost information by adding more detail/specificity (e.g., Replacing a single activity
type for “electrician, journeyman electrician” and senior electrician”) or when new Resources are added to the
organization that do not fit into existing Activity Types (e.g., new, unique piece of test Equipment that needs to be
costed differently than other pieces of equipment). 13

14. T-Code: KL02 Conduct Practical Exercise 14.2
Walkthrough: Change Activity Type
T-Code: KL02
Conduct Practical Exercise 14.2
Use this procedure to change an Activity Type.
An Activity Type is a cost object that represents a group of resources within a Cost Center. These resource groups
have capacity and unit of measure such as: Labor hours, Machine hours, Square Footage, etc. Activity Types
are consumed and utilized to produce the products and services of the organization. Use this procedure to
improve the utility/accuracy of cost information by adding more detail/specificity (e.g., Replacing a single activity
type for “electrician, journeyman electrician” and senior electrician”) or when new Resources are added to the
organization that do not fit into existing Activity Types (e.g., new, unique piece of test Equipment that needs to be
cost differently than other pieces of equipment). 14

15. LSA #1 Check on Learning
Q1: ___ ___ ___ involve allocating actual dollar amounts.
A1:
Q2: ___ ___ ___ is an allocation method where activity quantities are known and allocated based on a rate defined for the activity type (Quantity Based).
A2:
Q3: T/F: Activity Types are consumed and used to produce the products and services of the organization?
A3:
Q1 ___ ___ ___ involve allocating actual dollar amounts? A:
Q: ___ ___ ___ is an allocation method where activity quantities are known and allocated based on a rate defined for the activity type (Quantity Based).
Q: T/F: Activity Types are consumed and used to produce the products and services of the organization?
NOTE: Additional questions for the students;
Q: What are Activity Types used for?
Q: When should Activity Types be created in GFEBS?
Q: How are Activity Type rates set?
Q: ______________involve allocating a quantity which is usually hours of some type of activity? 15

16. LSA #1 Summary 16

17. Questions? 17

18. TLO Summary Action: Process Activity Types
Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With at least 80% accuracy learners must demonstrate proficiency with:
Communicate Activity Type Concepts 18