CSIT214 Lecture Notes - Lecture 6: There Are Known Knowns, Sunk Costs, Indirect Costs
18 Dec 2019
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Life-cycle costing: provides an overview of the cost of a project throughout its life cucle. Cash flow analysis: a method for determining the estimatuing annual costs and benefits for a project and resulting annual cash flow. Tangible and intangible costs benefits: tangible costs/benefits are those that are easy to quantify, like cost of purchasing some hardware for a project, intangible are not able to or very difficult to be quantified. An example would be an employee using their own time to utilise project resources and complete project work. Intangible benefits are usually goodwill, improved reputation (prestige) or general statements of improved productivity. Direct and indirect costs and benefits: direct costs are those that can be directly linked to project activities (salaries of full time contractors on the project, or hardware purchased specifically for the projects. Pms tend to focus on these cos they can be controlled.
