Type of Expense |
Specific Expense |
Cost |
|
Labor |
- Need analysis
- Information design
- Writing
- Editing
- Graphics
- Production
- Programming
- Project management
- SME time (if appropriate)
- Other
|
|
|
Training
|
|
|
|
Gathering source material
|
- Purchase of information
- Courier fees
- Travel and lodging
- Other expenses
|
|
|
Copying of drafts
|
- Quick copy /copy center
- Mailing/shipping/courier
|
|
|
Printing/CD duplication of the final version
|
- Printing or duplication
- Packaging (if needed)
- Postage or shipping for final version
- Inventory
- Other
|
|
|
Direct expenses
|
- Equipment
- Software
- Additional copying
|
|
|
Indirect expenses |
- Administrative expenses
- Corporate overhead
|
|
Top
- Sales (from sales of manuals, software, courses, and similar products)
- Sponsorship (also called an apportionment, like a retainer fee)
- Fee for service (also called time and materials, that is, paid for the actual time worked)
Top
- Percentage basis: A percentage of the total cost of the software project. Estimates range
from 5 to 20 percent of total development cost, based on a variety of factors.
- Calculating project hours:
- Determine the hours of writing
- Figure the writing cost per hour, which includes built in an overhead into the writing cost.
- Calculate additional expenses for writing (gathering information, training, equipment)
- Calculate "exceptional" costs, such as travel, training, and equipment.
Because the writing cost per hour is about 2-3 times the salary, it will include most administrative costs.
- Component cost basis (most time consuming but potentially the most accurate--calculate the specific costs of each anticipated expense; use the
expenses listed above as a guide)
Top
- Potential problems:
- Unanticipated costs
- Under-estimated costs
- Scope creep
- Failure to understand the scope of work
- Wrong assumptions
- Incomplete information
Top
- Fudge factors
- Tracking
- Early notification
Top
- Spreadsheets
- Estimators
- Project management software
Top
For detailed guidance in setting a budget, see Set the Proposed Budget.
Project
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(c) Copyright. 1999, 2000, 2001, 2002. Saul Carliner. All rights reserved.
