A cost component means portions of the cost item.
Example: A meal claim. A restaurant receipt can contain the meal cost, the tax and finally a service charge. This means that you can split a single amount into 3 different components.

However, once setup, a cost item will always be divided into the cost components set here, regardless of whether one or more components applies.

An Exact amount is the default cost component and it means the entire amount is reported as one figure. You need to delete this if you want to insert other components.

Shows the allocation type for the cost.
Example: Balance / Percentage / Fixed Amount

Shows the allocated value of the cost.