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Controlling Costs

Another major benefit of adding resources to the project is the added help in cost control it provides. Adding resources and their costs to the project plan will allow Microsoft Project to help you develop a budget for the project and to compare the budget with the actual costs as the work on the project proceeds (see Figure 9.3). You can detect cost overruns while there's still time to take measures to correct them. And, by the time the project is complete, Microsoft Project will have accumulated the data you need to prepare your final reports.

Costs The costs of a project usually stem more from the amount of money paid for the resources that work on tasks than from anything else. These are called resource costs, but there can also be costs that aren't identified with specific resources. These are called fixed costs. Examples of fixed costs might be taxes, licensing fees, legal fees, or gifts of appreciation to the Godfather (or his governmental counterpart). Total cost for a task is the sum of its resource and fixed costs.


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