Hello, I appreciate if you help me to understand the various financial related parts with following question. As Instance: My company is about to build a bridge.
A: Direct costs (which directly helps to build the bridge):
1. Sources:
1.1. We already have in hand: Such as Machines (Truck, Shovel, …), Manpower (labor, Civil Engineer) ==> Is it related to Resource section and their costs?
1.2. We must hire or order to buy: Such as Raw materials (bricks, Cement, Concrete) ==> Is it related to Order section and its cost? Is there any part to handle the project stocks to check how the order should be?
2. Assigning some of activities to Out Sources (OS) teams: Such as excavation teams ==> Is it related to Quotation section and its related cost?
B: Indirect costs (Which indirectly help the bridge projects)
1. The project permanent cost: Such as Equipping bridge construction workshop on location and Energy infrastructure providing cost ==> Is it related to Project Expense section and its costs?
2. The project variable cost:
2.1. We already have in hand: Such as our Office manpower, our Office machines ==> Is it related to Project Expense section and its costs?
2.2. We must hire: Such as experts that we hire for technical aspects of architecture ==> Is it related to Individual Expense section and its cost?
Questions:
3. What is activity price section and how can it be used in above mentioned project?
Thank you very much for your time to answer my question
A: Direct costs (which directly helps to build the bridge):
1. Sources:
1.1. We already have in hand: Such as Machines (Truck, Shovel, …), Manpower (labor, Civil Engineer) ==> Is it related to Resource section and their costs?
1.2. We must hire or order to buy: Such as Raw materials (bricks, Cement, Concrete) ==> Is it related to Order section and its cost? Is there any part to handle the project stocks to check how the order should be?
2. Assigning some of activities to Out Sources (OS) teams: Such as excavation teams ==> Is it related to Quotation section and its related cost?
B: Indirect costs (Which indirectly help the bridge projects)
1. The project permanent cost: Such as Equipping bridge construction workshop on location and Energy infrastructure providing cost ==> Is it related to Project Expense section and its costs?
2. The project variable cost:
2.1. We already have in hand: Such as our Office manpower, our Office machines ==> Is it related to Project Expense section and its costs?
2.2. We must hire: Such as experts that we hire for technical aspects of architecture ==> Is it related to Individual Expense section and its cost?
Questions:
3. What is activity price section and how can it be used in above mentioned project?
Thank you very much for your time to answer my question