CSIT214 Chapter Notes - Chapter 7: Whole-Life Cost, Sunk Costs, Cost Accounting
8 Jun 2020
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Discuss why many it professionals may overlook project cost management and how this might affect the ability to complete projects within budget. Cost management within an information technology project is probably one of the most difficult tasks an organization will encounter. Estimating the various costs that go into an it project is extremely difficult to do from the start. This is an important factor to consider when analyzing the success of cost management practices on a particular project, because final costs are measured against the initial estimates. Explain some of the basic principles of cost management, such as profits, life cycle costs, tangible and intangible costs and benefits, direct and indirect costs, and reserves. To increase profits, a company can increase revenues, decrease expenses, or try to do both. Life cycle costing allows you to see a big-picture view of the cost of a project throughout its life cycle.
