Re: material costs

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I have to disagree with alavinski ... the cranes are work resources since their availability determines the scheduling of the tasks that require them. Material resources are either items such as bricks for a wall that are physically incorporated into the task's deliverable or consumables such as fuel for those cranes that are used up during the course of the task.

The costs in Project do not represent the cash outlay the firm spends on the project. Instead they represent the specific economic cost to the firm of doing the project's work and only the project's work. If on a given day your 800 Euro/day crane only does 1 hour of work on project tasks, the cost should be distributed as 100 Euro to the project and 700 Euro to the firm's general overheads - only the 100 Euro portion being counted as part of the project's direct cost. After all, consider the case that you might have TWO projects under way, both of which need a crane for a few hours on some given day, let's say 4 hours each, so that one crane can be shared between them. Should each project budget bear the full 800 Euro cost of that crane for a total of 1600 Euro or should each budget pay for $400? Now it's not your project's fault that there isn't another project going on to use the crane's idle time and pick up some of that 700 Euro so why should its budget pay for it?

MS Project's costing only is concerned with the cost of the specific costs of the project's work and doesn't deal with other costs or the revenues of the firm in any way.
--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://project.mvps.org/faqs.htm for the FAQs


<jan.grinwis@xxxxxxxxx> wrote in message news:f4d27a36-f49f-49a9-8a7c-92f07c2f2ec2@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Hi,

I am having a problem with the resource type "Material"

I am hiring cranes and they cost 800 Euro/day/piece. No matter how
long they are working..
On certaine days I hire more than one and costs should be x times
800..


The std rate can't be defined per day.
cost per use doesn't seem to work either because only one crane is
calculated


I tried to define them as resource type "work"
They disadvantage then is that they add up in the total work hours..

Who knows???

Thanks in advance

Jan



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