Training expense

Q:  We are having trouble with our BPG training expense.  According to our figures training expenses should be 281,000. This allows for 71,000 general training, 10,000 for sales people training and 200,000 for two second shift lines.  According to the report, our training expenses are 504,000.  We would appreciate if you could explain why these two figures differ.

A:  It is kind of hard to tell what is happening without more information.  It looks like the team may have entered the entire amount of training expense on the decision form instead of only the $71,000 general training.  New employee training for sales and production are calculated automatically by the program (including increases due to changes in the CPI) and added to the amount entered for training continuing employees.

Allowing a little bit for inflation, the numbers would come out about right on this assumption.  The figures given for training new employees is for Year 3, Quarter 1.  As you go through the game, the amounts will increase according to changes in the CPI.