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Week 2 DQ 1
Week 2: Financial Plan - Discussion
Cost Components (Graded)
This week we will continue to use the Indoor Theme Park Case from the Week 1 Discussion, in which we discussed the project cost components and our estimate assumptions. This week we will discuss some of the "hidden" project costs and their importance in our project budget. Here are some questions we will address during our discussion this week. Define overhead costs in relation to a project, and explain why it is important to the project manager. Referencing the Indoor Theme Park project case, how should overhead be estimated for the new theme park project?
How is estimating done in your company, and how are overhead costs included? Week 2 DQ 2
Estimating Processes (Graded)
The process that is used for budgeting is as important as the source of the details of the cost estimates. There are two fundamental processes: Top Down performed by upper management, and Bottom Up performed by representatives of the project team that will be doing the work. Describe the two processes. Which do you favor and why?
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