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How to define Project Actual Cost ?

3 replies [Last post]
Irfan Khan
User offline. Last seen 2 weeks 6 days ago. Offline
Joined: 19 Jul 2009
Posts: 138
Hi Rodel,
I am working on Soil Grading Project & I am trying to make baseline for same project. Almost I done but I have confusion that how to define actual cost?

1.Should I define actual cost through Manpower?
2.Should I define actual cost through Equipment?
3.Should I define actual cost through Material?

Rodel need ur urgent reply….

Thanks…….


Replies

Rodel Marasigan
User offline. Last seen 21 weeks 2 days ago. Offline
Joined: 25 Oct 2006
Posts: 1699
Irfan,
The most effective and accurate is using the BOQ and make it tally to your WBS and Cost Account then to Activities. Also assigned each cost account to responsible person taking care of that Cost and implementation so it will be easier to track and monitor.
Irfan Khan
User offline. Last seen 2 weeks 6 days ago. Offline
Joined: 19 Jul 2009
Posts: 138
Thanks Rodel for ur promptly reply,

ok that’s fine, suppose i m going to define my Actual Cost on Material. I defined 5 Constructin phases & each phases have 5 activities and i have Cost of each phases separetaly.

1) should i divide cost of 1 phase & equaly put value in activities.

or give me any new idea....

thanks........





Rodel Marasigan
User offline. Last seen 21 weeks 2 days ago. Offline
Joined: 25 Oct 2006
Posts: 1699
Irfan,
It depends on the requirement and usage. If all of them are required then use all of them and allocate to cost account so it will be easier to track.