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What is Contribution Cost?
What is Contribution Cost?

Learn about Contribution Cost

Dan Wain avatar
Written by Dan Wain
Updated this week

The Contribution Cost report provides insight into the cost to complete Production Tasks based on the Contribution Performance of a team or individual combined with the appropriate fully-loaded (hourly) rates.

While similar to Productivity Cost, Contribution Cost differs as it excludes the time spent on Supporting Tasks whereas Productivity Cost evenly distributes the time spent on Supporting Tasks (Utilization) across the findings of the report.

Unless Utilization is 100%, you should see a gap between Productivity Cost and Contribution Cost (where Productivity Cost is higher) - the difference is the time invested on Supporting Tasks.

For example:

Contribution

Hourly Rate

Contribution Cost (per hour of output)

Team A

60%

$35

$58

Team B

90%

$50

$56

Team C

90%

$35

$39

This report is particularly useful for assessing teams that share functions or tasks that are geographically dispersed.

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