Pm0015
Q1. In order to include the cost aspects in the project scheduling, it is very much necessary to first define the cost-duration relationships for various activities in the project. Discuss Project Cost.
Ans.1:
Direct Costs:- Direct costs can be defined as costs which can be accurately traced to a cost object with little effort. Cost object may be a product, a department, a project, etc. Direct costs typically benefit a single cost object therefore the classification of any cost either as direct or indirect is done by taking the cost object into perspective. A particular cost may be direct cost for one cost object but indirect cost for another cost object.
Indirect Costs:- Costs which cannot be accurately attributed to specific cost objects are called indirect costs. These typically benefit multiple cost objects and it is impracticable to accurately trace them to individual products, activities or departments etc.
The goal of crashing is to reduce project duration at minimum cost. To reduce project duration while minimizing the cost of crashing, the project team should estimate require time, require the cost, crash time, crash cost for each activities. And then the team can estimate total crash time, total crash cost, the crash cost per week to reduce project duration at minimum cost. Project crashing costs and indirect costs have an inverse relationship; crashing costs are highest when the project is shortened, whereas indirect costs Increase as the project duration increases.
Total project costs include both direct costs and indirect costs of performing the activities of the project. Direct costs for the project include the costs of materials, labour, equipment, and subcontractors. Indirect costs, on the other hand, are the necessary costs of doing work which cannot be related to a particular activity, and in some cases cannot be related to a specific project. If each activity was scheduled for the duration that resulted in the minimum direct
Ans.1:
Direct Costs:- Direct costs can be defined as costs which can be accurately traced to a cost object with little effort. Cost object may be a product, a department, a project, etc. Direct costs typically benefit a single cost object therefore the classification of any cost either as direct or indirect is done by taking the cost object into perspective. A particular cost may be direct cost for one cost object but indirect cost for another cost object.
Indirect Costs:- Costs which cannot be accurately attributed to specific cost objects are called indirect costs. These typically benefit multiple cost objects and it is impracticable to accurately trace them to individual products, activities or departments etc.
The goal of crashing is to reduce project duration at minimum cost. To reduce project duration while minimizing the cost of crashing, the project team should estimate require time, require the cost, crash time, crash cost for each activities. And then the team can estimate total crash time, total crash cost, the crash cost per week to reduce project duration at minimum cost. Project crashing costs and indirect costs have an inverse relationship; crashing costs are highest when the project is shortened, whereas indirect costs Increase as the project duration increases.
Total project costs include both direct costs and indirect costs of performing the activities of the project. Direct costs for the project include the costs of materials, labour, equipment, and subcontractors. Indirect costs, on the other hand, are the necessary costs of doing work which cannot be related to a particular activity, and in some cases cannot be related to a specific project. If each activity was scheduled for the duration that resulted in the minimum direct