Determine Cost Categories for Software

Determine the cost-estimating category for each element in the WBS. This final step is not always necessary for every project, but it will be important for those that track unit-level costs in a WBS (see Figure 8-3). If this step is not done here, it needs to be done later, during the cost estimating process. Some projects use only one category of costs for simplicity. Typically, only hours are estimated. More complex projects may require more categories because different units are needed. The cost-estimating category determines how the cost for each item will be estimated as shown in Figure 8-12. Things such as capital equipment are usually estimated in currency, whereas effort is usually estimated in hours, weeks, or months of labor, which can readily be translated into units of currency. Overhead items such as project management, change control, and configuration management are estimated by using a proportional add-on to the basic software effort (a percentage).

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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