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1. Why is cost estimation such an important component of project planning? Discuss how it links together with the Work Breakdown Structure and the project schedule.
2. Would you prefer to use the bottom-up or top-down budgeting project cost control? What are the advantages and disadvantages associated with each approach?
3. Calculate the direct cost of labor for the project team using the following data. What are the costs for the individual project team members? What is the overall direct cost of labor?
4. Calculate the direct cost of labor for a project team member using the following data:Hourly rate: $65/hour, Hours needed: 160, and Overhead rate: 45%
5. Assume that overhead is charged on a flat rate basis. Each member of the project is assigned an overhead charge of $300/week. What would be the direct cost of labor for an employee, given that she is assigned to the project for 120 hours at $10.50?
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