What are the different types of project costs?

The various types of project overhead costs fall into many of the same categories as normal project expenses. They may be fixed or variable, operating or capital, and may include things such as workers, rent, materials and equipment, and any other type of costs that are typical of project management. These expenses are part of this category as they apply to specific aspects of the basic contract. To determine the project profitability, project managers are entrusted with identification of expenditure that are specially generated to complete the project. These expenses are tied to the outputs of the project that relate to a specific list of tasks to be completed to complete the project and fulfill contracts. However, the reality often interfers and some project expenditures tend to promote different outputs or to apply to all at once without the possibility to assign most expenditures to one bending over others. These types of umbrellas expenditure are known as project overhead costs.

Any type of project expenditure may end, for example, in this category, including salaries for general project managers. These managers spend time organizing the project as a whole and it may be impossible to allocate time between different outputs. Another common type of cost is general administration, which may include employees hired in the project accounting, supply used in the office, general secretary assistance or the cost of operating the main project office. Directors may include a wide range of conventional expenditures, such as storage devices used by the whole project or travel expenses for ECT projectors to participate in meetings.

It is important to distinguish between the overhead cost of the project and the overall general and administrative direction for the whole business. The cost of project overhead costs is generally specific to the project. The company has its own direction, which it allocates to clients and projects JAko percent of indirect costs. Although some costs are considered to be overheads of the project, they are still direct project expenditure. The project on the project would be assigned another percentage of indirect costs that come from the administration of the whole business.