Calculating the Costs of Training
Costs are incurred in developing, delivering and
evaluating training. These costs are categorized as
direct and indirect. The full cost of training is the
sum of all direct and indirect costs.
Often, the training manager will not have
access to many of the costs associated with
training but must obtain figures or reliable
estimates from the organization’s payroll, budget,
accounting, or comptroller’s office. Usually,
however, all direct and indirect costs can be
accounted for[2, p. 96].
Direct Costs
Direct costs are expenses tied specifically to a
product (training course or programme)[3, p. 26].
Direct personnel costs include the wages and
benefits paid to or on behalf of employees
involved in training (e.g. trainees and instructors)
as well as fees paid for external training services
(contractors, consultants, etc.). Also included in
direct costs are training development and
instructional materials preparation (including