Task: Select a project and complete the following:
- Identify all of the costs involved in the project. Label the costs as either direct costs, project overhead costs, or general and administrative overhead costs.
- Develop a time-phased budget for the project. What will be the cumulative cost of the project?
- Identify areas in the budget where cost cutting can be made if needed?
- Identify and assess one major and one minor risk inherent to the project. Develop a contingency plan for each of these risks.
Question 1: Identify all of the cost involved in the project. Label the cost ether direct cost, project overhead cost, or general and administrative overhead costs.
Following are the Costs involved in the Project:
- Salaries of Personnel directly involved in Project
- Cost of Materials directly involved in the Project. This include all construction-related costs
- Financial Rewards based on Performance
- Cost to move and rent to temporary care center.
Project Overhead Costs:
- Indirect Labor
- Cost of Idle time
- Cost of Overtime
- Cost of Holiday Pay
- Cost of Training
- Cost of Support Staff Welfare
- Cost of Research
- Cost of Inspection
- Cost of Fringe Benefits
- Power (Variable Portion)
- Maintenance Cost (variable Portion)
- Property Tax
- Property Insurance
- Power (fixed portion)
- Maintenance (Fixed Portion)
General and Administrative Overhead Costs:
- Salaries of Support Staff
- Executives’ Salaries
- Relocation Allowance
- Employee Stock Purchase Program
- Long Term Equity Based Program
- Hospitalization/ Surgical to Medical Consultation
- Disability Income
- Audit Fees
- Legal expense
- Bank Charges
- Depreciation on Office Equipment
- Life Insurance Plan
- Dental Insurance ...
The solution provides a detailed explanation and a full response to the following inquiry by using a hypothetical project to model this task. This is all completed in 800 words and includes references.