Working with costs
Fixed costs are calculated separately from resource costs in Microsoft Project because they represent different types of expenses. Fixed costs are those costs that do not change regardless of the amount of work performed or resources that are used. Examples include rent, insurance, fees, and equipment leases. These costs are stable or fixed and predictable, providing a consistent baseline for the project’s budget.
On the other hand, resource costs are variable and depend on the amount and type of resources used. These include costs for labor, materials, and equipment, which fluctuate based on the project’s scope, duration, and level of activity. For example, the more hours a team works, the higher the labor costs. These work and material resource costs are calculated based on the resource data that is entered into the Resource Sheet as discussed in Chapter 4, Creating, Defining, and Assigning Resources.
By calculating fixed costs separately from...
