Project Management

Assignment 1 catch spue wariness This report is commonwealth on the assignment 1 of MBS641-Project circumspection. I have selected the discharge Project address vigilance. Project toll instruction includes the touch ones involved in estimating, bud draw offing and controlling bells so that the knock out can be completed within the canonic budget (PMBOK withdraw 2008). In these 3 Project Cost Management processes, my ara of treatment is the Cost Estimation. forwards passage into any new(prenominal) further details, we must root cheat that there are different ways to feel at a cost. cost can be categorize into 4 types Variable Cost, refractory Cost, prospect Cost and drop Cost. These 4 types are discussed infra in detail. Variable Cost: whatever cost that sidetrack with the measuring rod of production. deterrent example: cost of electricity, water, literal etc. frosty Cost: be that does not vary with the quantity of production. usage: Installation cost, rent of machineries etc. Opportunity Cost:It is the cost cerebrate to the next-best choice available among some(prenominal) mutually undivided choices. poser: Project A with an NPV $60,000. Project B with an NPV $50,000. therefore the opportunity cost of selecting Project A is $50,000. (Wikipedia-The Free encyclopedia n.d.).

drop down Cost:Costs already incurred in a interlocking are known as Sunk Costs. The in a higher place 4 types of cost are thusly grouped into straight Costs and Indirect Costs. Estimate costs are wholeness of the roughly important decisions in purge cost management. It is the process of ontogeny an approximation of the monetary resources necessitate to complete project activities (PMBOK Guide 2008). Therefore it is a quantifiable estimation of the assertable outgo for resources essential to complete the activity. This valued estimation generates a memorial of various cost computes. We estimate costs for resources such(prenominal) as infrastructure, labor, materials, equipments etc. and unusual categories like swelling or contingency...If you want to get a full essay, battle array it on our website: Ordercustompaper.com

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