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In this video, we'll take a look at costs in relation with resources in Microsoft Project 2013.

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Video Transcription:

Toby: Welcome back to our course on Project 2013. If you've been following me so far, you'll be familiar with our house build project where we have a selection of the kind of activities, tasks involved in building a house and we've got to the point here where we've got a pretty good sample project for many of the tasks, but we haven't looked at all so far at costs. In this section and the next we're going to look at costs. In this section we're going to look at costs as they relate to resources and then in the next section we're going to look at project costs. So here's the resource sheet for our project. Let's have a look at costs on this sheet.

Now you notice that the resources on this resource sheet basically share the same columns, but materials and work use different combinations of those columns. The one that uses the least is the type material. So let's put in the cost for the materials first. To make things a little bit easier I'm going to apply a filter to this view. So go up to the Data Group on the View tab, and the filter I'm going to use is resources material. The material resources that I've got are bricks, doors, windows, and the fuel for the ground pump. Now when we're putting in cost of materials, the cost goes in the standard rate column and basically it's the cost of one of whatever the unit of the material is. Now the units are in this material label column. So when we're looking at the price of bricks we're looking at the price of 1,000 of bricks. Now this obviously greatly depends on the bricks themselves, but pretty much as a going rate, we'd say for 1,000 bricks it's going to cost in U.S. currency about 450 U.S. dollars. Even more variable what a door would cost. I've just put doors in there. In reality, we'd have exterior doors and interior doors. Exterior doors, particularly solid wood doors would generally be very much more expensive than interior ones, and clearly we could be using any number of materials.

We could have UPBC type doors and so on. But I'm going to come out with a ballpark figure for doors of $250 per door. Some would be a lot more expensive but you could get some cheaper doors than that. And then for the windows, again, I'm going to go in for a sort of moderate quality. We're going to say $300 per window. That just leaves us with the price of a liter of fuel for the ground pump and typically that's going to be about 60 cents per liter. So I've put in my costs now for the materials.

Now in some cases there may be an additional cost per use. Often this will be something like a delivery charge. So for instance, if we were using thousands of bricks, we may need to pay to have them delivered. Let's suppose that we've got a delivery charge of $100 associated with the bricks but the doors and windows there is no delivery charge or cost per use and similarly with the fuel, there is no delivery charge or cost per use.

Now we come to this very important column, the accrual column, accrue at. And for each of the resources that we use, we need to decide how the cost is accrued within the finances of our project. Now by default costs are accrued prorated, which means prorated throughout the life of a task. So if you were using bricks, say, over the course of a task, then the cost of those bricks, 12,000 bricks say over a 12 day task, you'd be incurring the cost of 1,000 bricks per day and that's how it would be in the accounts for the project.

But there are alternative accruals. Basically you can say accrue at start.

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