INFO3333 Lecture Notes - Lecture 5: Indirect Costs, Sunk Costs, Cost Overrun

• School: University of Sydney
• Department: Information Technology
• Course: INFO3333
• Professor: Alan Faker

Document Summary

Challenging (most it projects run over budget: money is the dominant focus in most organisations. Planning cost management: determining the policies, procedures, and documentation that will be used for planning, executing, and controlling project cost. Estimating costs: developing an approximation or estimate of the costs of the resources needed to complete a project: determining the budget: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. Controlling costs: controlling changes to the project budget. Cash flow analysis: when money arrives and leaves. Life cycle costing: total cost of ownership, or development plus support costs for a project. Intangible costs/benefits: difficult to measure in monetary terms (e. g. reputation) Tangible costs/benefits: organisation can easily measure in dollars: direct costs: directly related to producing the products/services. Indirect costs: not directly related to the products of services but indirectly related to performing the project usually estimated as a percentage of direct costs.