Costing of work resources

Projects that need greater diligence in monitoring and control will choose to implement a project costing plan. It is your choice whether to cost your project or not. There is a great deal of flexibility available in costing, as we will see in the upcoming sections. Choosing to reflect a higher costing realism will incur a significant increase in your activities as a project manager. In the next section, we will begin with costing techniques for work resources by using the simplest use cases possible.

Standard rate of pay

For any work assignment, the cost will be calculated by a basic formula: Standard rate of pay * hours worked. You can specify the rate of pay using any mode that's used in your organization – hourly, daily, monthly, or yearly. Refer to the following screenshot, where the Std. Rate column has been now filled in for the work resources we created earlier:

Figure 15.11 – Set standard rates of pay...