What's the idea from using one of the Tasks a common cost "Capitalization"?
Hi,
I want to know What is the idea behind using on of the costs included in the work breakdown structure as a common cost as a group level?!!
and Shouldn't i include it in any transaction?!!!(i.e. don't use it in the PO, AP invoices....etc?).
Please i need clarification,
Thanks in advance.
Hi
In any project there could be some type of shared cost, that may be associated with a project as a whole, but it would not be practical to allocate such common cost to each one of the individual tasks.
For example, a construction project will have a task for foundation, plumbing, electric wiring, etc. The project manager, and construction inspector are resources common to all those tasks, and it may be costly to try and allocate directly the hours of those resources to each one of the tasks.
Dina
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You say that the budget cost is total money which committee gave you for the project.
But the book refer budget cost for every resource. I don't understand that.
" In planning your departmental retreat, suppose you
have specific budget targets
for certain cost categories, $2,500
for travel expenses, $500 for printing,
and $1,000 for conference room rentals. Using Project’s budget resource
feature, you can define your budget
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of items. You can then group your resources to
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costs to your planned costs. This way, you
can view your travel budget
of $2,500 side by side with your planned
costs of, say, $3,700,
and immedi- ately see that your next
goal is to find a way to trim those travel
costs. "
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This question was solved.
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