MGMT 404

MGMT 404

  • Submitted By: wwisdomm
  • Date Submitted: 06/13/2014 3:01 PM
  • Category: Business
  • Words: 414
  • Page: 2
  • Views: 1

Review Questions

Name ____ _______

Answer the following questions:

1. What is a resource?

A skilled human (specific disciplines either individually or in crews or teams), equipment, services, supplies, commodities, material, budgets, or funds are identified as resources.

2. Why aren't resources assigned to summary tasks?

A summary task is a grouping for a set of related assignments and is used to describe the tasks within each group. In MS Project the value of a resource is added to each work package below the summary and it adds time to that resource’s usage. If we assign resources to summary task it can create unpredictable durations and assignment values that will affect cost and could cause resource over-allocations.

3. What is the difference between Start, Prorated and End in association with costs?

The difference between Start, Prorated and End as it relates to cost is as follows. Start is the cost applied to a resource at the beginning of a task, Prorated is cost applied to a resource on a specific schedule over the duration of the project, and End is the total cost applied to a resource upon completion of a task or end of project.

4. Give a real-world example of the difference between a fixed cost and a cost per use?

Fixed cost is a one-time cost for a task regardless of the time it takes to complete it, while cost per use is a cost incurred every time that resource is used. A real-world example of fixed cost would be purchasing equipment for the company or bidding on a maintenance contract. A real example of cost per use would be leasing equipment for the company or the car service the company uses for upper management.

5. Why is a fixed cost entered with the task and not the resource?

Fixed cost is not defined by the amount of time or number of resources it takes to complete the task. Basically the cost remains the same regardless of hours, materials, or people used so it cannot be considered a resource.

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