Project cost type Flashcards
1
Q
Variable costs
A
The cost of the deliverable, service, or material can fluctuate based on varying factors.
2
Q
Fixed costs
A
A constant “fixed” cost throughout the project.
3
Q
Indirect costs
A
An expense that can be shared with other projects or the organization, such as rent, phone, or equipment.
4
Q
Direct costs
A
Costs that are directly tied to the project.
5
Q
Sunk costs
A
Sunk costs are monies that have been invested into a project. Sunk costs are gone, they are “sunk” into aproject.
6
Q
Opportunity cost
A
Opportunity cost is the amount of an opportunity that is given up. Consider: project A is worth $55k and project B is woth $89k. You’d choose project B to do. The opportunity is $55k - the amount of Project A that you can’t do because of the opportunity of project B.
