---
title: "Set up activity based costs"
slug: "bc-set-up-activity-based-costs"
description: "Learn how to set up activity-based costs as resources, including direct and indirect costs, for effective production management."
tags: ["BC", "Business Central", "Food", "Task"]
updated: 2026-06-25T09:59:13Z
published: 2026-06-25T09:59:13Z
canonical: "docs.staedean.com/bc-set-up-activity-based-costs"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.staedean.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Set up activity based costs

Activity based costs represent non-material costs (such as machine or labour costs) that can be associated with production. Set them up as resources in the program. While Anywhere Mobility Solutions type of resource can be assigned as an activity based cost, certain fields on the resource card must be filled in for the activity based cost to have Anywhere Mobility Solutions meaning.

## Steps

1. In the search box, enter **Resources**, and then choose the related link.
2. On the **Home** tab, in the **New** group, choose **New** to create a new resource.
3. In the **No.** field, enter a number to identify the resource.
4. In the **Type** field, choose the type that best describes the resource.
5. In the **Base Unit of Measure** field, enter the unit of measure code for the unit by which the resource's usage is measured.
6. On the **Invoicing** FastTab, in the **Direct Unit Cost** field, enter the direct cost of the resource. Enter this value in terms of the resource's base unit of measure.
7. In the **Indirect Cost %** field, enter a value that represents the overhead cost of the resource.

The resource's overhead cost is calculated by applying this value as a percentage of the resource's direct unit cost. If a resource's direct unit cost is $100 and the indirect cost percentage is 20%, the resource's overhead cost is $20.
8. Fill in the other fields on the resource card.

For more information about the activity based costing functionality in this solution, see [Activity based cost detail posting](/business-central/docs/bc-activity-based-cost-detail-posting).

For more information about assigning routings to activity based costs, see [Assign routing information to activity based costs](/business-central/docs/bc-assign-routing-information-to-activity-based-costs).

## Related

- [Activity based cost detail posting](/bc-activity-based-cost-detail-posting.md)
- [Assign routing information to activity based costs](/bc-assign-routing-information-to-activity-based-costs.md)
- [Set up general basic process manufacturing rules and values](/bc-set-up-general-basic-process-manufacturing-rules-and-values.md)