What is the total cost of a project and what are the major cost areas?

Question

Accepted Answer

The total cost of a project includes all expenses incurred from start to finish, with major cost areas typically being labor, materials, equipment, and overhead.

Labor costs: wages, salaries, benefits for employees working on the project
Materials costs: raw materials, supplies, components needed for the project
Equipment costs: machinery, tools, technology required for the project
Overhead costs: utilities, rent, administrative expenses related to the project
Other costs: permits, licenses, subcontractor fees, contingency funds
Example: A construction project's total cost would include labor for workers, materials like concrete and steel, equipment like cranes and bulldozers, overhead for office space and utilities.

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What is the total cost of a project and what are the major cost areas?

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