Exercise 5.1

Cost Estimate

Background

This exercise continues your student project. The scenario is that you work for the fictitious company: Bear Claw Corporation. You are a project manager assigned to a new project. You are in the defining and planning phases and tasked to produce the project planning documents. This exercise calculates the project cost.

Directions

Produce a cost estimate by calculating the direct and indirect costs.

First, itemize the direct costs, a cost for each task from the WBS. Produce a cost estimate for each task item. It is possible some tasks will have no cost. The cumulative total of the task costs is your projects direct cost.

Second, itemize the indirect costs, a cost for activities associated with the project but not found in the WBS. It is possible some projects have no indirect costs. The cumulative total of the non-task project costs is your projects indirect cost