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Budgettting - Assignment Example

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The project cost management engages the processes in estimating, budgeting, and managing costs so that the project can be delivered within the approved budget. By definition, budgeting try to allocate the money to various activities being carried out in a given project by…
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Download file to see previous pages... That is; the key members involved in the project did estimate the costs related to materials, equipments, utilities, and resources needed to perform the required to complete the Germantown tree planting activity. The cost estimates of this project was done basing on a vendor bid analysis, where the receptive bids from skilled and qualified vendors provided the baseline cost estimate for every particular component integrated with the budget. Nevertheless, these costs estimate will be refined during the course of the project to include any additional details as it becomes available.
The direct costs include the costs that are related to the project. These costs include cost incurred while buying tree seedling, supplies such as fertilizers and planting shovels. These costs account to more than a half of the budget spending.
Indirect costs include costs that enable successful completion of the project. For instance, the personnel will require utilities such as water during the event. The tree planting exercise will call upon the outsiders and they will be given refreshments hence adding to the cost of the project. The cost associated with the promotion and advertising will be indirect costs to the project.
In the variable costs changes with the level of activity being undertaken, one of the variable costs is the cost of the personnel. The more personnel turn for the activity, the higher the costs that will be incurred during the event. Similarly, the more the costs of food will tend to be higher hence making the cost of the budget to be higher.
In such a program, the theme touches on a global phenomenal: Climate change. If the organization applied for grants, the application has a higher chance of being successful. Some of the organization that provides likelihood for sponsoring the project includes, United Nations Environmental Program, World Forest Service, Food and Agriculture ...Download file to see next pagesRead More
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