Development cost comprises activities needed to design and create the program before delivery—needs analysis, instructional design, content and material development. Designing training materials is therefore a direct development expense; marketing, facility upkeep, and participant wages occur outside the development phase and are classified as implementation, overhead, or opportunity costs.

A. Marketing occurs after design; it is considered program promotion, not development.

C. Facility maintenance is fixed overhead, unrelated to the creation of course content.

D. Trainee salaries/benefits are opportunity or delivery costs incurred during participation, not during program development.

1. Noe, R.A. Employee Training & Development, 8e, McGraw-Hill, 2020, Ch.4, pp.164-165.

2. Phillips, J.J. & Phillips, P.P. Return on Investment in Training, 2e, Butterworth-Heinemann, 2004, pp.47-49.