What Project Cost that You Need to Calculate

Discussing the software project, we need to identify any costs that related with the software project. By identifying any cost in the software project we can eliminate the risk of hidden cost that will become a problem someday. This article will discuss what cost that will be happen in a software project

The Triangle of Cost

You have only three types of cost that you should care.

  • Human resources
  • Tangible Material
  • Intangible Cost

Human resources cost

It can be

  • Standard cost
  • Overtime cost
  • Cost / use (additional cost)

Alice is a full-time employee. She works for 10 $ / hour in standard rate, and 20 $ in overtime rate. Alice will get benefit taxi voucher for 10$ / days if she works for 8 hours. On Tuesday, Alice works for 10 days. How much cost that we should pay?

  • Daily cost for Alice = (10$ x 8) + (20$ x 2) + $10 = 130 $ / days
  • Tax will be calculated between 5% or more

Tangible material

Tangible material is material that will be used to develop a software such as

  • Software
  • Computer and its accessories
  • Other hardware's such as paper, printer, pens, Books, anything that you need.

Intangible cost

This cost can be any cost that related with your productivity such as:

  • Internet connection
  • Learning subscription
  • Electricity and water
  • Meal box
  • Travelling
  • Etc.

Do you have any other cost that not stated here, please share in the comment below.

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